When people get hurt or wronged by big companies, they often wonder what to do next. Should they join a class action lawsuit with others or file their lawsuit? The answer isn’t always clear, but understanding the pros and cons can help.
Let’s get going:
What Is a Class Action Lawsuit?
A class action lawsuit is when a group of people with the same issue team up to sue one company. These cases usually involve unsafe products, bad drugs, or data leaks. Instead of hundreds of people filing separate lawsuits, they become part of one big case.
You can learn more about how class actions work by visiting Lawsuits.com.
People have used class actions in many famous cases. For example 1998, several states sued tobacco companies and won a $206 billion settlement. More recently, people affected by the 2017 Equifax data breach received over $425 million in compensation.
Let’s look at the advantages and disadvantages of class action lawsuits.
Benefits of Class Action Lawsuits
Lower Costs
One big reason people choose class actions is cost. Everyone shares the legal fees, making it cheaper for each person.
More Power
There’s strength in numbers. A group working together has more power and can often get the attention of big companies faster.
Faster for Courts
Handling one case instead of hundreds helps courts work faster. It also prevents different judges from giving different rulings on the same issue.
Helps Everyone Get a Chance
Sometimes, a person’s loss isn’t big enough to sue alone. A class action helps them get something rather than nothing.
Downsides of Class Actions
Smaller Payouts
Because the money is divided among many people, each person might only get a small amount.
Less Control
The lead plaintiff and lawyers make the decisions. Others in the group don’t have much say.
It Can Take Time
Class actions often take years to finish. That can be hard for people who need help fast.
You Might Lose the Chance to Sue Alone
If you’re part of a class action, you might be unable to file your case later, even if your harm was more serious.
What is an Individual Lawsuit?
An individual lawsuit is when one person files a case on their own. This kind of lawsuit is common when the injury or loss is personal and serious, like in car accidents or medical mistakes.
The process can be longer and cost more, giving a person more control over their case. They work one-on-one with their lawyer; any money won goes directly to them, not shared with others.
Benefits of Individual Lawsuits
You Keep What You Win
In an individual lawsuit, you get to keep all the money awarded. There’s no splitting with others.
You Make the Decisions
You and your lawyer decide how to handle the case. You can settle, go to trial, or drop the case.
Your Story Gets Heard
Your case is based on your unique experience. That can help you get better results, especially if your loss is serious.
Downsides of Individual Lawsuits
Higher Costs
You may have to pay more in legal fees. Some lawyers work on a “no win, no fee” basis, but it may cost more.
More Risk
If you lose the case, you get nothing. And it could take a lot of time and energy.
More Involvement
You’ll likely need to spend time talking to your lawyer, going to court, and helping build your case.
Which One Is Better?
It depends on your situation. If your loss was small but others had the same problem, a class action may be better. It saves money and time and allows you to be part of something bigger.
If your loss was significant, such as a serious injury or a large amount of money, an individual lawsuit may yield more.
Also, think about how much time and effort you want to spend. A class action takes less work on your part. An individual lawsuit needs more of your time, but it might pay off more.
Summing Up!
Class action and individual lawsuits both have their benefits. The right choice depends on your loss, how much time you can give, and what you hope to get. Understanding the differences helps you make the smartest decision for your situation.
