How do class action settlements compare to other types of settlements?

Class action settlements are a form of settlement that are different from other types of settlements. In a class action settlement, a group of people who have suffered a similar harm as a result of the same issue (called the class) come together to file a lawsuit against a single defendant. This type of settlement works by combining the individual claims into one suit and using one set of lawyers to represent the entire class of people. In contrast, when multiple people file separate suits against a single defendant, the defendant will have to deal with multiple trials and multiple lawyers. This can become costly and time consuming for the defendant. In a class action settlement, the plaintiffs and defendant often negotiate a single settlement that applies to all of the claimants in the suit. This can be beneficial for both sides as it allows the defendant to resolve the dispute quickly, while distributing the settlement money fairly among all of the claimants. Class action settlements are also beneficial for claimants because the individual amounts of money paid out usually do not amount to a large sum. But when the claims are combined into a single class action settlement, the plaintiff class may receive a much larger settlement amount since all of the cases are combined. Overall, class action settlements are beneficial for both the plaintiff class and the defendant. These settlements allow for quicker resolution and larger payments to plaintiffs than other types of settlements.

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