How do class action settlements differ from other types of settlements?

Class action settlements are different from other types of settlements in a few key ways. Generally, class action settlements are different because they are used to represent a group of people with a common legal issue, while other settlements often involve two individual parties. In a class action settlement, a plaintiff (or group of plaintiffs) brings a lawsuit against a single defendant on behalf of a larger class of similarly-affected people. This means that the outcome of the lawsuit will affect the whole class of people, not just the plaintiffs involved in the lawsuit. Also, class action settlements generally have a much higher payout than individual settlements. This is because, in most cases, the defendant is held liable for the actions of the entire class that the plaintiffs are representing. This means that the defendant must compensate all members of the class for their damages, even if they are not individually named or involved in the lawsuit. Finally, class action settlements require a court-certified settlement agreement, which must be approved by the judge. This agreement will contain details of the settlement terms, such as who is eligible to receive a payment and how much they will receive. Other types of settlements, such as those between two individual parties, may not always require a court-certified agreement, depending on the situation. Overall, class action settlements differ from other types of settlements because they involve a group of people, a larger potential payout, and require a court-certified agreement in order to be finalized.

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How do class action settlements differ from other types of settlements?

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