Once a class action lawsuit is certified, the court dictates that communication be made to all the parties involved and this is typically completed by letter or other communication. There is a date associated with joining or not joining the lawsuit (opting in or opting out).
There is also a lead plaintiff identified in the case and that person represents all the other people in the “class” of class action. Ultimately, they have control over the class action settlement approval process as well.
Once the case has been certified, the plaintiffs in the “class” can opt in or opt out of the case. The idea is that the lead plaintiffs are clearly associated with the lawsuit, but everyone else who may have been involved in the initial stages of the case can now join or not join the class action suit depending on how they want to handle their individual situation. The court gives them a specific amount of time to make their decision.
If a party does decide to join the class action lawsuit, they are entitled to compensation or redress if the lawsuit is successful, but they are also barred from seeking any compensation or redress individually and they cannot make any additional similar claims if the defendant is found not to be negligent. You must opt-in by the date specified in order to participate and benefit from the class action lawsuit.
If the party chooses not to join, they cannot claim any part of the compensation distributed if the class action lawsuit is successful. They can, however, choose to seek compensation or redress in the matter as an individual. There are reasons to opt out of a case, depending on your situation.
If the defendant wins the class action lawsuit, obviously the plaintiffs do not receive compensation and they cannot file another lawsuit on the same matter. If the plaintiffs win a class action suit, an amount of money specific by the court is put into a “pot” that is then divided by an equation also devised by the court. In some cases it is an equivalent sum where in others the amount will be devised according to other criteria. The “pot” will also be used to pay the class action attorney or the law firm.
In many cases, class action law suits are resolved outside of the official courts. Class action settlements can be negotiated by the attorneys, or cases can go into private mediation. In these cases, it helps to have a powerful class action law firm behind your case because they are more experienced at negotiating with powerful and large companies who may have limitless fund to throw at a class action lawsuit that could potentially cost them millions of dollars in a settlement and even more in future profits.
Outside mediation or settlement of a class action law suit has its own set of pros and cons. This method serves the company against whom the suit has been brought since it can mitigate the negative press brought about in a trial. Additionally, this can get funds to the plaintiffs more quickly.
The judge in the case must ultimately approve the settlement to ensure its fairness to the plaintiffs.