What do credit reports, milk and photos all have in common? Companies in these realms have all recently been hit with class action settlements. If you've ever received an email or letter giving you notice of a class action settlement and been confused about your rights, you are not alone.
Let's first define a class-action lawsuit. It Is a civil lawsuit brought on by a group of people or businesses (the class) accusing the defendant of the same harmful or unlawful action. The biggest class-action settlement was in 1998 and required big tobacco companies to pay out more than $206 billion to included states, over a 25 year period.
If you receive a notice of a class action settlement, most of the time you don't even need to respond or join. In some instances, you will have a link and a specific code or number to join. One person, the named plaintiff in the lawsuit, represents the group, essentially doing the work on behalf of the group.
Class action settlements are safe and effective. By joining one - even if you didn't know you were wronged - you are holding a company responsible for their negligence. It is a way to protect consumers from misleading advertising, faulty products, and fraud. They can also help protect the environment. The BP Gulf of Mexico oil spill resulted in a class action lawsuit to the tune of $20 billion, the second-highest settlement after big tobacco. Additionally, employees are protected from things like unfair wages and discrimination.