John W. Redmann | January 10, 2025 | Personal Injury
Class action lawsuits allow multiple individuals harmed by the same party to seek compensation collectively. When a large number of people are affected, it can be impractical to file individual lawsuits. A common question is how settlement money is divided among class members. While the process may seem complex, understanding how funds are allocated can help you determine if joining a class action is the right choice for your personal injury claim.
What is a Class Action?
When the same party injures a large number of people because of the same circumstances, it may result in a class action lawsuit. One or more individuals serve as the representative plaintiffs for the personal injury case. The representative plaintiffs file a class action lawsuit on behalf of the larger “class” of people injured by the defendants.
Class action lawsuits are governed by state law. Louisiana’s requirements for class action lawsuits include:
- The class is so large that having all members as plaintiffs is impractical.
- There are common questions of fact or law that apply to the class.
- The claims of the representative parties are typical of the claims by the class.
- The representative parties will adequately and fairly represent the interests of the class.
- The class is or can be defined objectively.
The results of the class action lawsuit are binding on the entire class. Therefore, if the representative parties accept a settlement, the settlement terms apply to all class members. The same is true if the representative parties take the case to court and receive a jury verdict. The verdict applies to the entire class.
Dividing Money Among Injured Parties in a Class Action Lawsuit
The court must hold a hearing to approve a class action settlement. A judge determines if the settlement proposal is fair to the class. Class members are notified of the hearing and may object to the settlement. The court hears objections to the settlement, and the judge determines if the objections have merit. If the judge denies all objections, the class action settlement is approved.
The representative parties generally receive the largest payments from the class action settlement. They filed the lawsuit and actively participated in the litigation. The class members do not testify in court or otherwise participate in the lawsuit.
The attorneys representing the plaintiffs and the class receive their fees and costs from the settlement. Most personal injury lawyers agree to take class action lawsuits for a contingency fee. Therefore, their fees are based on a percentage of the recovery. The law firm is also reimbursed for costs and expenses it paid during the litigation.
The remaining funds are divided among the class members. Several factors impact how the funds are divided and how much each class member receives for their claim. Those factors include:
- The number of representative parties and their payment
- The number of class members eligible to receive payment
- The cost and fees for litigating the class action case
- The severity of the class member’s injuries and damages
- The strength of the evidence proving the claim
The money from a class action lawsuit may not be divided equally among class members. The members usually receive payments based on their individual circumstances.
Advantages of Joining a Class Action Lawsuit
It might seem unfair that you could receive less money than someone else in a class action lawsuit. However, several benefits for class members may make joining a class action lawsuit the best legal option for pursuing a claim.
Advantages to consider include:
- Strength in numbers: There is strength in numbers when seeking damages for a personal injury claim. The class members have a greater chance of winning their case than they would if they pursued individual lawsuits. It can be more difficult to dispute the claims of thousands of victims than to fight one person’s claim.
- No out-of-pocket expenses: You are not required to pay any out-of-pocket expenses to join a class action lawsuit. The costs of the lawsuit are deducted from the settlement proceeds. Because the costs are spread out among all class members, your portion of the costs is smaller than had you filed an individual lawsuit.
- Less stress for class members: Since class members do not actively participate in the litigation, class members do not experience the stress of a lawsuit. They have a passive role in the lawsuit, but they stand to benefit from the work of the representative parties.
- Minor injuries can result in payment: A person may sustain a minor injury, which results in some damages. Yet, their damages are minor and do not justify the expense of filing an individual lawsuit. However, minor injuries are included in a class action lawsuit. Regardless of the severity of your injuries or the amount of your damages, you can join the lawsuit to pursue compensation based on your situation.
Ultimately, joining a class action can be an effective and efficient way to pursue your claim while minimizing personal risk and effort.
Get Help With a Personal Injury Case in Louisiana
You could receive compensation for economic and non-economic damages if your injuries were caused by another party’s negligence or wrongdoing. Call the Law Office of John W. Redmann, L.L.C., to schedule a free consultation with an experienced Metairie personal injury lawyer. Our legal team fights to obtain fair settlements and verdicts for injured victims and their families.
Contact the Metairie Personal Injury Lawyers of The Law Office of John W. Redmann, LLC for Help Today
If you were injured in an accident in Metairie or Gretna, Louisiana, and need legal help, contact our personal injury attorneys at The Law Office of John W. Redmann, LLC, to schedule a free case review today.
We serve Jefferson Parish County and Louisiana’s surrounding Areas
The Law Office of John W. Redmann, LLC – Metairie, LA Office
2901 N Causeway Blvd, STE 202
Metairie, LA, 70002
(504) 500-5000
The Law Office of John W. Redmann, LLC – Gretna, LA Office
