What to Do if You Receive a Class Action Notice
We received several calls recently from clients who received various class action notices.To verify the notice is genuine, we recommend googling the litigation to make sure it is a legitimate lawsuit and not a scam. You can google the law firm name on the notice and call the number on their website (not the postcard) to see if they truly are representing clients for the case. You can also check the website the notice has on the postcard, which often will have detailed instructions regarding why you received the notice and why there is a pending lawsuit against the defendant. The website classaction.org also lists known active suits. The plaintiffs’ attorneys, working to identify all wronged parties, get names of class participants from receipts, warranty registrations or company customer lists.
Once you confirm the notice is legitimate, you can either participate in the lawsuit and join the other plaintiffs (the class members) by following the law firm’s instructions, opt-out and file your own separate lawsuit (not recommended/inefficient) or do nothing and decline to participate. My advice is to participate by providing the authenticating information requested. Class action lawsuits are designed to not be cost-effective for an individual to bring because the defendants almost always start with the position they did nothing wrong. The litigation (and where the attorneys bringing the case on behalf of the class makes their money) is document intensive, which takes time and money. A lawyer must front hundreds of thousands, if not millions, of dollars in expenses and billable hours to find the metaphorical “needle in a haystack.” Once the case looks plausible, whether through litigation with bellwether cases (one or two cases pursued to a jury trial to see how the case shakes out in front of a jury) or through extensive concessions in discovery, the two sides try to work out a settlement for all class members, which must then be approved by a judge.
While the cases are not worthwhile for an individual, they can be worthwhile when a large group brings their claims jointly. The catch is you never know what you will get until the case settles but typically it makes sense to take whatever nominal settlement comes from the case. Fair warning though, litigation can take years so we recommend filling out the forms and then forgetting about it. I participated in many class action suits as a plaintiff and received checks ranging from $300 to most recently a mere $0.34. Either way, it is more than $0!
|
Sorry, the comment form is closed at this time.