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

Class action settlements differ from other types of settlements in that they involve a large number of people, known as a “class,” instead of just one or two. Class action cases are brought when a group of individuals have been wronged in a similar way. This could be due to a company’s negligence, discrimination, or unlawful practices. In a class action lawsuit, the plaintiff or plaintiffs represent the entire class of people who were affected by the same wrong. This means that they are bringing the suit on behalf of the entire class of people. On the other hand, a settlement in a regular civil case would usually apply just to the individual(s) bringing the case. In Kansas, all class action lawsuits must be approved by the court before they can proceed. This approval process is known as “certification” and helps to ensure that all members of the class are being treated fairly. Once a lawsuit is certified, the court will then issue a notice informing members of the class that they have the option to opt in or opt out of the case. In a class action settlement, the court will decide how much money should be paid to each member of the class as compensation for damage or losses suffered due to the wrong-doing. The settlement amount could be less than a single person could receive in a regular civil case, but the benefit to class members is that they don’t have to go through the lengthy trial process. It can also be more cost effective for the company being sued, since a single settlement can resolve the claims of a large number of individuals.

Related FAQs

Does a class action settlement need to be approved by a court?
What type of damages are available in a class action lawsuit?
How are attorneys’ fees paid in a class action settlement?
What is the effect of class action damages on individual class members?
What is a reverse class action lawsuit?
What is a class action opt-out?
How are class action settlements distributed?
How do I file a class action lawsuit?
How is a class action lawsuit certified?
What is the role of the class action counsel?

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

Related FAQs

Related Blog Posts