How Much Does it Cost to Start a Class Action Lawsuit?
A class action lawsuit allows a small group of individuals to represent a larger group that suffered similar damages due to the same harmful conduct, typically by a corporation. Instead of each plaintiff filing a separate lawsuit, a class action consolidates their cases into a single lawsuit, saving time, money, and resources.
- Starting a class action lawsuit typically costs nothing, as most lawyers work on a contingency basis, meaning they only get paid if the lawsuit is successful.
- Class action lawsuits consolidate multiple individual cases into a single lawsuit, saving time, money, and resources for all involved.
- The lead plaintiff in a class action lawsuit plays a crucial role by working closely with the legal team and making key decisions about the case.
- In a winning class action case, attorney’s fees are deducted from the settlement or verdict, with the remaining funds distributed among the class members.
- Being a lead plaintiff can result in a higher percentage of the settlement due to the additional responsibilities and efforts undertaken.
Even so, initial costs are a common concern when considering a class action. Fortunately, most class action lawsuits are handled on a contingency basis, meaning plaintiffs pay nothing unless they secure compensation through their case. Contact us to connect with a skilled class action lawyer who can explain your full legal rights and options.
Duties of Class Representatives
Class action lawsuits are often used to resolve issues involving defective products, environmental hazards, mass fraud, data breaches, and other issues affecting large numbers of people. They involve two categories of plaintiffs: class members, which include all individuals seeking compensation through the action, and class representatives, who act on behalf of the group.
Class representatives have more responsibility than other class members. For starters, they take the initiative to work with a lawyer and start the case. They also make important decisions regarding the lawsuit and work directly with the legal team spearheading the class action. As a lead plaintiff, you will collect documents related to your experience, such as receipts or medical records, discuss your experience with your lawyer, and may be called to testify if the case goes to trial.
Cost to Start a Class Action Lawsuit
In most cases, it costs nothing to start a class action lawsuit. Class action lawyers typically work on a contingency basis, meaning their fees come from the eventual settlement or verdict. In other words, plaintiffs pay nothing if the class action fails. The class action lawyer ties their compensation to the success of the lawsuit and assumes the financial risk of pursuing it.
How Is the Money Split in a Winning Class Action Case?
The lawyer’s contingency fee in a class action lawsuit is calculated as a percentage (generally between 25 and 35 percent) of the total settlement or verdict amount. The final amount may be slightly lower or higher depending on the case’s complexity. However, the presiding court will review the final amount and can reject the proposed fee if it is deemed unreasonable or unfair.
After attorney’s fees are deducted, the remaining funds are split among class members. Ultimately, the amount each plaintiff receives in class action lawsuits depends on the size of the class, the percentage reserved for attorney’s fees, and the total amount awarded.
First Steps to File a Class Action Lawsuit
If you believe you have grounds for a class action lawsuit, the first step is to contact an attorney experienced in representing plaintiffs in this kind of claim. Among other things, they can determine if your situation satisfies important class action legal criteria. If you have a strong case, they will explain your next steps, including gathering evidence, identifying class members, and filing case documents.
Importantly, the class proposed through the lead plaintiff’s lawsuit must be certified by the presiding court. Important factors include whether the law and facts overlap across individual cases and whether the attorney can adequately represent the best interests of the entire class. If the judge certifies the class, the case can proceed.
Perks of Being Lead Plaintiff
One benefit of being the lead plaintiff is simply the sense of justice achieved by holding large corporations accountable for their wrongdoings. Further, lead plaintiffs often receive a higher percentage of the settlement or verdict than other class members, subject to the court’s discretion. Courts grant these “incentive awards” to account for the time and effort the lead plaintiff put into the case.
Contact Class Action U if You Think You May Have a Potential Class Action Lawsuit
Starting a class action lawsuit usually costs nothing, so you have little to lose by exploring your legal options with a professional. If you think you may have a viable class action lawsuit, contact us to connect with a skilled attorney. They’ll review your case and make sure you know your rights in a free, no-obligation consultation. If you have a strong case, they can explain how to start a class action lawsuit and guide you through each step.
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