What is a graduated class action settlement?

A graduated class action settlement is a type of legal settlement that provides different levels of compensation to different classes of individuals in a class-action lawsuit. In California, graduated class action settlements are most common when the defendant has limited funds to pay all of the plaintiffs in the lawsuit and wants to provide compensation to as many individuals as possible. In a graduated class action settlement, a defendant agrees to pay a set amount of money to a set number of individuals in each class, with each class getting a higher amount of money than the class before it. Each class also receives a different level of compensation based on their individual circumstances. This type of settlement allows for more equity between the members of each class. For instance, a graduated class action settlement might provide compensation for medical expenses for members of Class A, and then members of Class B would be entitled to a higher amount of compensation to cover lost wages. This would give each class of individuals a fair chance at receiving the compensation they need to cover the damages caused by the defendant. In California, graduated class action settlements are designed to resolve lawsuits quickly so that plaintiffs can receive their compensation as soon as possible. It is also beneficial for defendants, who can settle the case for a lower amount than if all of the plaintiffs were to receive the same amount. Graduated class action settlements can be beneficial for both plaintiffs and defendants, allowing them to reach an equitable resolution to the lawsuit.

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What is a graduated class action settlement?

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