Average Class Action Lawsuit Payout Per Person
Class action lawsuit compensation varies greatly between cases. Consequently, the average class action lawsuit payout per person will likely not reflect the potential compensation you could receive. However, understanding the factors that influence these payouts can give you a better idea of what to expect.
- Class action lawsuit payouts vary widely and depend on factors such as the extent of claimants’ losses and the quality of legal representation.
- Lead plaintiffs in class actions often receive higher payouts due to their additional responsibilities and role in the lawsuit.
- The distribution of class action settlements is typically managed by a court-appointed administrator, with payouts calculated based on the total settlement minus legal fees and divided among eligible members.
- The process of reaching a class action settlement and distributing payouts can take years, requiring patience from claimants.
Factors That Determine Class Action Settlement Amounts
A class action is a legal procedure in which one or more plaintiffs file a lawsuit on behalf of a larger group of people who have been similarly harmed by the same defendant. Class action settlement amounts depend on the extent of the claimants’ economic and non-economic losses, such as:
- Medical expenses
- Lost income
- Financial losses due to identity theft or data breaches
- Physical pain and suffering
- Emotional distress
- Transportation expenses
- Product replacement costs
Keep in mind that class action lawsuits often do not account for each claimant’s individual circumstances. The lead plaintiff’s circumstances may serve as a proxy for all class members. Their damages often play a significant role in determining the overall settlement amount for the group.
In some cases, courts award punitive damages in class actions to punish defendants for extreme recklessness or intentional misbehavior. While these damages primarily serve to punish the defendant, they also result in a larger payout per person.
The quality of legal representation can also affect how much compensation you receive from a class action lawsuit. The plaintiff attorney’s ability to investigate the circumstances, build a compelling case, and negotiate effectively can lead to a more favorable settlement. The more skilled they are, the higher the class action settlement amount is likely to be.
How Are Class Action Payouts Distributed?
After a class action lawsuit is settled, each class member receives a portion of the award. As a baseline, the payout per person is calculated by taking the total settlement amount, subtracting attorney fees and other costs, and then dividing the remainder by the number of eligible class members. However, the division is not always equal—the exact amount can vary based on individual circumstances.
A court-appointed administrator typically oversees the distribution process, verifying claimants’ eligibility and calculating individual payouts. While many class actions result in equal payouts for all class members, certain factors, such as greater losses or a more significant role in the lawsuit, may result in higher payouts for specific individuals.
Lead Plaintiff Gets More Money
The lead plaintiff, also known as the class representative, often receives a larger payout. This individual takes on additional responsibilities, such as initiating the class action, gathering evidence, attending trial, and communicating with the attorney. To compensate for this extra work, the lead plaintiff may receive a larger payout.
Unclaimed Funds: What if Not Enough People Join the Class?
Many people are unaware of their eligibility to join a class action, leading to unclaimed settlement funds. The settlement agreement should outline what happens to unclaimed money. In some cases, it may return to the defendant, while in others, it may be donated to charity through cy pres awards. Alternatively, unclaimed funds may be redistributed to participating class members, increasing the average class action payout per person.
How Long Does It Take To Receive a Payout From a Class Action Lawsuit?
Though class actions can result in significant payouts, patience is key. Gathering evidence, identifying class members, and going through negotiations, motions, hearings, and trial can take years. After a case reaches a settlement or verdict, it can then take a few weeks or months to distribute class action funds, especially in complex cases with large numbers of claimants.
Pre-Settlement Funding
While waiting for a class action lawsuit to conclude, claimants may face financial challenges due to the damages they suffered. In some cases, it is possible to borrow money on a future class action settlement to cover certain expenses. An attorney or financial advisor can help you determine if this option is available and suitable.
Contact Class Action U to Learn More
It is difficult to calculate average class action settlement amounts, but many people receive significant compensation through participating in these lawsuits. Because most attorneys handle class actions on a contingency fee basis, class members typically pay nothing if the class action fails.
If you are interested in starting or joining a class action lawsuit, Class Action U is here to help you understand your legal rights and options. Contact us today to learn more and connect with an experienced class action attorney.
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