Should you join a class-action lawsuit?

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Should you join a class-action lawsuit?
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When you receive an email or mail notice inviting you to join a class-action lawsuit, or notifying you that you’ve been automatically included, it might give you pause. Is it worth the small reward — usually under $20 — to give up your rights to sue ind...

It might have happened to you a few times in past years: You received an email or mail notice inviting you to join a class-action lawsuit, or notifying you that you've been automatically included. But being part of such a lawsuit might be intimidating, especially if you need to opt in, and would mean surrendering the option to sue individually.

People are also reading… But in cases where you suffered significant harm, suing individually could secure a bigger payout. In most cases, Abney says, plaintiffs of class-action lawsuits pay legal fees on contingency, which means they don't pay anything unless they win the case. Lawyers taking on these lawsuits will usually receive payment as a percentage of the settlement won from the company.

Even though the class representative is the case's headline,"That person isn't necessarily going to get any kind of windfall," says Jennifer A. Riley, a partner at Duane Morris and vice chair of the firm's workplace class-action group. She notes that some courts in some jurisdictions would be able to grant a service award to plaintiffs representing the case, which are often between $2,500 and $7,500 , but other courts have found these awards inappropriate.

"If you have your own lawsuit, the value of your claim might be much, much higher as an individual than it would have been as a class member," says Gerald L. Maatman Jr., a partner at Duane Morris and the chair of the law firm's workplace class-action group."You're trying to decide, 'If I opt out, am I going to do that much better than I'd do in a class action?' And in certain circumstances, an individual would do better.

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