- Key Takeaways
- 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.
Contrary to a common misconception, hundreds or thousands of people do not need to join together before a class action can begin. One person may file a lawsuit and ask the court to certify it as a class action. The case can proceed on behalf of the proposed class only if the court determines that the applicable class-certification requirements have been met.
How Many People Are Legally Required for a Class Action Lawsuit?
There is no fixed minimum number of people required to pursue a class action lawsuit. Instead, Rule 23(a)(1) of the Federal Rules of Civil Procedure requires the proposed class to be “so numerous that joinder of all members is impracticable.” This requirement is known as numerosity.
Numerosity does not mean that each affected person must file a separate lawsuit. It asks whether adding every potential class member as an individual party would be impractical. Although many class actions involve hundreds or thousands of people, a smaller group may still satisfy the requirement under certain circumstances.
When evaluating numerosity, courts may consider factors such as:
- The estimated number of class members
- The ease of identifying affected people
- The geographic locations of potential members
- The cost and difficulty of pursuing separate lawsuits
- Whether individual claims are financially practical
Ultimately, courts consider both the class size and whether resolving the claims collectively would promote fair and efficient adjudication.
When Small Groups May Still Qualify
Small groups can qualify for class-action treatment if everyone in the group was affected by a similar legal issue or type of harm and if many individual lawsuits would be impractical.
For example, if a small group of people were all affected by the same defect in a product that cost each of them $200, that group deserves justice. However, it may be impractical for each person to bring a legal claim, go to court, and present independent evidence in a full trial just to get their $200 back.
A class action could allow the group as a whole to move forward and hold the company accountable, even if the company would otherwise avoid liability for all the damage done.
Requirements to Certify a Class Action Lawsuit
Certification of a class action is a key part of the class action process. This involves the court determining that the group of potential plaintiffs can be joined as a class and the case can move forward.
The court considers a few key factors in deciding whether to certify a class action. This includes the following:
- Numerosity: This relates to class size. The group must be large enough that it’s impractical for each person to file an individual lawsuit. There is no fixed minimum number required.
- Commonality: This refers to a shared legal issue. Class members must have common questions of law or fact that can be resolved in a single legal proceeding.
- Typicality: This means the lead plaintiff’s claim arises from the same course of conduct and is based on the same legal theory as other claims of class members.
- Adequacy of representation: The representative parties and counsel must be able to adequately protect the legal interests of all affected individuals.
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Can One Person Start a Class Action Lawsuit?
One person can start a class action. Doing so involves working with a class-action lawyer to file a lawsuit, with the goal of eventually attracting more people to join.
The person who files the case is called the lead plaintiff. Their suit doesn’t automatically create a class, though. As the case progresses, the court may determine if other similarly affected individuals should be included in the proposed class.
If it qualifies as a class action, the lead plaintiff will represent others in the group.
Role of the Lead Plaintiff
The lead plaintiff plays an important role in a class action, representing the legal interests of every other class member.
The lead plaintiff also plays a much more active role than the other members of the class. They will:
- Work with the class action lawyer throughout the case
- Help provide evidence and information about damages
- Work with counsel to make decisions about the case
The lead plaintiff doesn’t need to have experienced the exact harm of every other class member. But their experience must have been similar enough to fairly represent the shared interest of all class members.
What Happens After Filing
After filing, it’s important to understand the class action timeline. Typically, the court will:
- Review whether the proposed class meets the legal requirements
- Determine if there are common issues among class members
- Evaluate whether the lead plaintiff and attorneys can represent the interests of the class adequately
- Approve or deny certification
If the class action is approved, the attorneys will begin preparing the case with the lead plaintiff’s assistance. This involves conducting discovery, gathering evidence, and interviewing witnesses.
Many class actions settle, so the attorneys will be negotiating with the defense throughout the case. If the case doesn’t settle, it will go to trial. If there is a settlement or a favorable court verdict, eligible class members may receive compensation in accordance with the terms approved by the court.
Class members will collect their money and must determine whether a portion of their class action compensation is taxable so they can pay any required taxes.
How to Know If Your Case Could Become a Class Action
If you receive a data breach notification, are a victim of a defective product, or otherwise experience a type of harm that many others also experienced, you may have a case that could become a class action.
The best way to find out if others are similarly affected is to reach out to a class action attorney who can use their knowledge of the legal industry to identify other potential victims. You can also consider whether:
- Many other people experienced the same problem
- You and many others likely suffered similar harm because of an issue
- Individual claims against the responsible party would be too complicated to pursue on your own.
The court will also evaluate whether your case meets one of Rule 23’s requirements, such as whether common issues predominate over individual questions and whether a class action is the best method for resolving the dispute.
You should also know that certain situations are more likely than others to result in a class action. If you find yourself a victim of these situations, then you may have a claim. Examples include data breaches and dangerous products.
You can review our checklist to ensure you’re ready for a class action and understand the types of evidence you need to succeed.
Consulting a Class Action Lawyer
Whether you are wondering how to join a class action lawsuit or how to start a class action for the first time, getting legal help can be the best option to understand your rights.
Contact Class Action U to be connected with a lawyer experienced in class action lawsuits.
Using Consumer Legal Resources
Our news feed keeps you up-to-date on important news about class actions so you don’t miss the chance to make a claim if you’ve been affected by defective products, data breaches, privacy breaches, and more.
Check out our news feed to see if you should submit a claim to become part of any class actions. You can join a group to try to get the compensation you deserve after something went wrong that caused harm to you and many others.
