The Pros and Cons of Joining a Class Action Lawsuit

On Behalf of Lake Tindall, LLP | April 13, 2024 | Class Action & Mass Torts

After decades of experience in handling class action lawsuits in Mississippi, our team at Lake Tindall has seen just about everything when it comes to class actions. Many of our clients have questions they want answered to help them make an informed decision about moving forward with such a lawsuit or trying it on their own. The most commonly asked questions we get include, “Is there a downside to joining a class action lawsuit?” And, “Is it worth signing up for a class action lawsuit?” Others query, “How much money do you get from a class action lawsuit?” We’re here to answer these important questions and to weigh in on the advantages and disadvantages of joining a class action lawsuit.

Benefits of Opting Into a Class Action Lawsuit

Some of the advantages of joining a class action lawsuit:

• Strength in Numbers: The bargaining power of a group who have similar claims is much more powerful than an individual. A collective case may also build credibility more quickly than one person’s claim, depending on the situation.
• Efficiency: Multiple claims in one single lawsuit hold many benefits in time efficiency. Judges are mandated to resolve numerous claims in one proceeding which keeps the courts from being bogged down, reducing administrative costs and caseloads. All of these aspects make class actions more efficient than multiple claims on the same topic. 
• Cost Saving & Access to Legal Representation: Litigation costs are much lower when divided amongst many plaintiffs. With that said, most class action lawyers only charge a fee if the lawsuit is won, simply charging a percentage of any winnings. This means that everyone has access to experienced legal representation. If each person pursues a claim individually, they would each have to pay for their legal representation which some simply may not be able to afford.
• Higher Damages: With multiple plaintiffs for the same claim, class action lawsuits typically seek much larger settlements or damages than for one claimant, thereby maximizing compensation for all those represented. How much money you get from a class action lawsuit depends largely on the number of plaintiffs, the total amount of the damages, and the percentage the lawyers receive for representation.

Drawbacks of Class Action Lawsuits

• Limited Control: Due to the large number of class members and the potential that they reside in different areas, there is typically very little active participation or decision-making from the claimants. In such cases, there is very little the plaintiffs can do about the uncertainty of the outcome and there is always a risk there is no recovery for the class members.
• Opt-Out Rights Waived: When a plaintiff is involved in a class action suit, they give up the right to pursue legal action against the defendant. Once the outcome of the class action is decided, there is nothing an individual can do if they disagree with the court’s decision.
• Lower Individual Damages/Settlement: The average class action lawsuit payout per person depends on the number of class members. Most often, the damages are distributed amongst all the class members after the lawyer’s percentage has been taken out. This may result in a much smaller recovery than if plaintiffs litigated individually.
• Litigation Efficiency: Despite freeing up the courts with one lawsuit versus many, class actions can take years to resolve due to complexities and timelines that are specific to class action suits. This can prove frustrating for those seeking a quick resolution.

Top Rated Class Action Law Firm Near Me

When it comes to deciding whether or not to pursue a class action lawsuit, it’s important to weigh the pros and cons of doing so. It may help to consult with an experienced class action attorney near you to assist you with making an informed decision. Lake Tindall is an experienced legal team for those residing in Jackson, Mississippi, and surrounding areas. Give us a call today for the answers and support you deserve!