Customers and the Law: How Does a Consumer Class Action Lawsuit Work?

You may feel angry and isolated over an injury you sustained from a defective product. You’re considering a consumer class action lawsuit, but you don’t know if it’s the right decision.

First, hire a class action lawsuit attorney. They can give you more information about consumer protections. Moreover, they can convey if your case falls under class action status.

Under their guidance, you can start a class action lawsuit or take part in one. There are numerous benefits to class action cases, but it may be more prudent to pursue an individual case.

This article will show you how to file a class action lawsuit in more detail. Let’s explore.

Legal Guidance

Based on your experience, an attorney will determine if filing a lawsuit is appropriate. The lawyer will conduct additional research to see if other consumers were harmed by the same product.

They’ll find similar stories that match your story. Also, they must know if other victims had already filed a similar lawsuit. Moreover, they must examine previous rulings to sense the potential outcome.

Additionally, the attorney must ensure the client qualifies for filing a lawsuit. The following factors can hamper the claims process:

Finally, the attorney will advise if you should file an individual or class-action lawsuit.

Filing the Lawsuit

When filing the lawsuit, the complaint will list a class of individuals who qualify for compensation. Plus, the complaint must determine if people from out-of-state can take part in the lawsuit.

In some cases, out-of-state victims are ineligible. If the lawyer wants to open the case to anyone nationwide, the complaint must extend a nationwide invitation:

  • Example: If multiple people sustained an injury from a power drill, the complaint must note that the case is open to anyone nationwide who bought the drill within the past three years after use.

From there, the lawyer will submit the complaint to the court, and a judge will review it.

Making a Class Action Lawsuit Official

Even though the lawyer listed the complaint as a class-action suit, the class action process isn’t official until the judge grants approval.

Before a judge certifies a class action suit, the case will remain as a putative class action case. The case moves out of putative status when the judge certifies the case.

The Benefits of a Class Action Lawsuit

A class action case is usually cheaper than an individual case. This is because all the plaintiffs are splitting the costs of representation.

Additionally, class action lawyers usually operate on a contingency basis, meaning that the attorneys won’t get paid if they lose the case.

A class action case will mitigate risk as well. If you pursue the case as an individual, you could spend thousands of dollars to pursue the case in court. However, the payout could only amount to a few hundred dollars.

To know if you should pursue a case, talk to your attorney. The best litigation lawyers will help you determine if a class action case is a right option. You have the right to drop out of a class action case.

Court Notification

If the jury sides with the plaintiffs, the court will distribute the award money among participants. However, you may contend with a settlement deadline. If you don’t meet the deadline, the following may occur:

  • The defendant will receive a refund
  • Your share will be distributed among other participants
  • The court may give the amount to charity

Therefore, ensure that you receive the latest updates on a class action settlement.

The Courtroom Process

The class action lawsuit process entails a single judge hearing the case. The case participants will name a lead plaintiff to speak for the group.

The lead plaintiff will work with their attorney, and the attorney will articulate the case in court. From there, the lead plaintiff and the attorney will convey the latest information to the other plaintiffs. The other plaintiffs have a more passive role throughout the process.

Make a Decision Sooner Rather than Later

These types of cases entitle all participants to damages. However, that doesn’t mean everyone will receive award money, especially if they join later in the game. A class action lawsuit can place companies in major financial peril.

As a result, they may undergo bankruptcy, or the company may not have enough funds to honor the judgment. The participants who joined the suit early usually receive the gains first, while those who joined later may receive nothing.

Settling the Case

In many cases, companies facing a class action suit want to settle the case. The defendant will offer an amount for the judge to review. If the judge approves the offer, the plaintiffs can decide if the amount is enough.

The attorneys may negotiate for a higher sum if they deem the settlement unsatisfactory. If negotiations fail, the case will go to trial.

However, this doesn’t mean that the settlement option is off the table during the trial phase. If there is no consensus, a jury will hear the case.

How to Handle a Consumer Class Action Lawsuit

To handle a consumer class action lawsuit effectively, contact an attorney for further guidance. They can tell you if joining a class action case is beneficial.

In some cases, pursuing the case as a group will help you save on legal costs. Moreover, a group lawsuit can increase your chances of winning the case.

Interested in reading more? Read more on our blog to gain insight into other topics.

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