What You Need to Know About the Average Class Action Lawsuit Payout per Person
If you’ve heard about class action lawsuits, you might be wondering what they are and how they work. Simply put, class action lawsuits involve a group of people who have suffered similar harm or losses, coming together to sue another party. The outcome of these lawsuits can have a significant impact on individuals’ lives, so it’s essential to understand the ins and outs of class action lawsuits payout per person.
How Do Class Action Lawsuits Work?
In a class action lawsuit, a person or a group of individuals files a lawsuit against a defendant on behalf of a larger group of people who have suffered the same or similar harm. This group of individuals is referred to as the “class,” and the person or group that files the suit is called the “lead plaintiff” or “class representative.”
The class certification process determines whether the case can proceed as a class action. If the court certifies the case, it means that all members of the class will be included in the lawsuit, and the lawsuit will proceed as a single action.
What Factors Determine the Payout Per Person in a Class Action Lawsuit?
Several factors determine the payout per person in a class action lawsuit, including the number of individuals in the class, the severity of the harm suffered, and the defendant’s financial resources. Typically, attorneys’ fees are deducted from the payout, and the remaining amount is divided among the class members.
While there is no set formula for calculating class action lawsuit payouts, the court will consider several factors. For instance, in a medical malpractice lawsuit, the court may consider the cost of medical treatment, lost wages, and the cost of future medical care, among other things.
Examples of Class Action Lawsuits Payout Per Person
One of the most notable class action lawsuits payout per person involved the tobacco industry in the late 1990s. In the settlement, the tobacco companies agreed to pay $206 billion to 46 states over 25 years. The settlement also created a fund for individuals who suffered smoking-related illnesses, with payouts ranging from a few thousand to several hundred thousand dollars.
Another example is the recent Equifax class action lawsuit that was settled for $700 million. Each affected person was entitled to free credit monitoring or a cash payment of up to $125. However, due to the number of claims filed, the payout per person decreased.
Conclusion
In conclusion, class action lawsuits are an essential tool for individuals who have suffered harm or losses. The payout per person in a class action lawsuit is determined by several factors, including the number of individuals in the class and the severity of the harm suffered. If you’re part of a class action lawsuit, it’s crucial to understand the payout structure to ensure you receive fair compensation for your losses or harm suffered.
