At the inception of all class action suits, that is once the suit has been certified as a class action by the court, all of the parties involved on the plaintiff side have the opportunity to "opt in" or "opt out" of the lawsuit. The attorney (usually for the defense) contacts all of the parties in writing, outlining the class action and offering the opportunity to join or not join by a specific date.
There are various reasons to join or not join a lawsuit and pros and cons associated with being a part of a class action. The factors used in making the decision to may be based on hard figures, like those in a securities class action lawsuit or in a monopoly or fraud case. Other factors can be based on how quickly you need to secure compensation or if the amount you might receive could change based on injury, illness or pain and suffering.
Why would you opt in to a class action suit? It would seem simple to join a class action lawsuit to get compensation for something you would have lost otherwise. In many cases, this is true, but here is a quick guide to the reasons why people typically opt into class action suits: - People typically opt in to class action lawsuits if they don’t have the financial resources to seek compensation or redress independently.
- People who opt into class actions may not have a significant enough financial stake to seek action independently.
- In many cases, people really may have the best chance of getting some sort of compensation by joining a group of people demanding redress than as an individual.
Why would you opt out of a class action suit? It might seem silly not to opt in, but depending on the lawsuit and depending on your individual circumstances, opting into a class action law suit can be against your best interests. Here is a quick guide about opting out of class action litigation. - People who choose to opt out of a class action law suits may have much more at stake than the average plaintiff and therefore may want to move forward on their own behalf.
- The person may see that their situation is much different than that of the “class” so that their joining the class action is not appropriate or not in their best interests.
- A person may believe that the lead plaintiffs or the counsel in the class action suit are not representing their best interests.
Making the decision about opting in or opting out of a class action law suit is a serious matter. You could potentially gain or lose a significant amount of money. Of course, if you feel as though you have a stake in a current class action lawsuit, you should seek the advice of a class action lawyer before you make the decision to opt in or opt out. Your individual circumstances will dictate whether or not a class action is in your best interest.