What is the legal effect of a class action settlement?

A class action settlement is an agreement between parties to resolve a lawsuit without going to trial. In New York, when the court approves a class action settlement, it has the effect of an enforceable court order. This means the parties who were part of the class action must comply with whatever terms the settlement outlines, or they could be held in contempt of court. The settlement also binds future class members, who could have been a part of the class action had it gone to trial. This means that any individuals who have similar legal issues that are part of the class can be bound by the settlement if they do not opt-out of the settlement or object to it. If they do opt-out or object, they can sue for their own damages, separately and outside of the class action. The amount of damages or relief awarded to class members in the settlement will vary, depending on the terms of the settlement. Generally, a class action settlement will provide financial compensation to the representative plaintiffs and other class members, as well as other forms of relief, such as injunctive relief. Injunctive relief is an action of the court that requires a party to do or not to do something, such as stop a certain practice. Overall, the legal effect of a class action settlement is that it is binding on all parties who are a part of the class action. The settlement may provide relief to the representative plaintiff and other class members, including money damages or injunctive relief. It may also bind future class members who could have been a part of the class.

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What is the legal effect of a class action settlement?

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