How Many People Do You Need For a Class Action Lawsuit?

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Class action lawsuits have become a key feature of the legal landscape, with over 200 cases filed annually and settlements surpassing $40 billion for three consecutive years, including $51.4 billion in 2023 alone.

Notable cases, such as the $10.3 billion 3M PFAS settlement, highlight the financial stakes and complexity of these lawsuits, while the rise of data privacy claims reflects growing consumer protections.

With class certification granted in about 63% of cases, understanding trends in class action litigation helps individuals make informed decisions about joining these legal efforts.

Quick Summary:

With settlements exceeding $40 billion annually for three years, including $51.4 billion in 2023, class actions are reshaping the legal landscape across industries.
Acting as a class representative requires commitment, including gathering evidence, communicating with members, and ensuring fair representation, with potential for extra compensation.
Courts typically require at least 40 members for certification, depending on the case type, ensuring efficiency and fairness in handling widespread harm.
Understanding distribution schemes, timelines, and tax implications is essential for class members to maximize their compensation and meet deadlines effectively.

What Qualifies as a Class Action Lawsuit?

For a legitimate class action claim to be filed, federal rules dictate that a single plaintiff must prove that at least a dozen people sustained harm in a similar way or suffered financial losses at the hands of another party.

There can either be one single named plaintiff or multiple people taking action against the same defendant or multiple defendants. Some litigations involve thousands of people, such as customers who purchased a defective product from the same company.

Potential class actions require evidence of a pattern of harm, and for this reason, how many people you need for a claim matters. When many people endure the same damages from the same party, it makes sense to join these cases together as one.

What Number of Class Members is Needed For a Class Action?

Understanding the size requirements for class action lawsuits is critical when pursuing certification. While there is no fixed number of plaintiffs required, certain guidelines and trends can influence the viability of a class action.

The following is an overview of typical minimum class sizes, industry-specific averages, historical certification rates, and state-specific variations.

Minimum Class Sizes by Case Type

Consumer Protection: A minimum of 40 members is usually needed to demonstrate impracticality of individual lawsuits, with larger groups preferred in widespread harm cases.
Employment Law: Wage and hour disputes or discrimination claims typically require 20-30 members, though courts often favor groups of 40 or more.
Product Liability: Successful certifications often involve 30-50 members, especially for cases with broad harm or injury caused by defective products.

Industry-Specific Average Class Sizes

Retail: Ranges from 50 to several thousand, particularly in cases of deceptive advertising or product defects.
Healthcare: Medical device and pharmaceutical cases average 100-200 members, given the number of affected patients.
Technology: Data privacy lawsuits often exceed 1,000 members, reflecting the large user bases impacted by breaches.

Historical Certification Trends

Courts typically consider numerosity met with over 40 members, though classes with as few as 20 members may be certified in special circumstances.
Certification success rates are around 63%, higher in cases demonstrating clear commonalities and substantial harm.

State-Specific Requirements

California: Courts align with federal guidelines, favoring classes of 40 or more, though smaller groups may struggle.
New York: At least 30 members is the norm, particularly for consumer and labor disputes.
Texas: Classes as small as 15-20 members may qualify, depending on the case specifics.
Florida: Certification is often granted with 25 or more members, provided common legal or factual issues exist.

Although class action lawsuits do not have a universal minimum size, understanding industry averages, historical trends, and state-specific guidelines is essential for certification success. Consulting legal experts can provide tailored advice and ensure compliance with relevant requirements.

What is the Class Representative?

The class representative plaintiff, or "class rep" is the lead plaintiff in the case. In most cases, a wronged or injured person will contact a law firm about their case.

The firm will research the person’s individual claims and determine whether they are unique to that person’s circumstances (individual lawsuit), or instead stem from a systemic practice of alleged behavior that affects many people the same way (class action lawsuit).

Serving as a class representative, or "class rep," in a lawsuit is a unique opportunity to lead and advocate for others who have been similarly impacted.

This role comes with important responsibilities, some time commitments, and valuable protections.

Here’s a simplified breakdown of what to expect if you take on this key role in a class action lawsuit.

Who Can Be a Class Representative?

The class representative must be someone who genuinely shares the same harm or injury as other members of the class. This shared experience ensures they can represent the group effectively.

Personal Experience: You must have firsthand experience with the issue at the heart of the lawsuit, just like the other class members.
Fair Representation: You should be committed to fairly representing the interests of the entire group, not just your own.
Good Communication Skills: Since you’ll act as a link between lawyers and class members, being able to communicate clearly is a big plus.

What Does a Class Representative Do?

Taking on this role means you’ll have some specific responsibilities, but the legal team will guide and support you throughout.

Gather Evidence: You’ll need to provide documents or proof, such as receipts, emails, or photos, that support the lawsuit.
Keep Everyone Updated: As the main contact for class members, you’ll share updates about the case and make sure everyone understands their options.
Be Present for Key Moments: This could include attending meetings, depositions, or even testifying about your experiences if needed.

How Much Time Will It Take?

Being a class representative requires some time, but most of it happens at the start and key points of the case.

At the Start: Expect to spend several hours a week during the early stages collecting documents, meeting with lawyers, and learning about the case.
During the Case: Over the months (or sometimes years) of the lawsuit, you’ll need to stay in touch with attorneys for updates and attend occasional meetings.

Are There Any Benefits?

While most class members receive an equal share of the settlement, the class rep often gets an additional award for their effort and involvement.

Extra Compensation: You may receive a larger portion of the settlement as an incentive for taking on the responsibility.
No Legal Fees: You don’t need to worry about legal costs; these are usually covered by the settlement or handled by the law firm.

What Protections Are in Place?

Taking on a public role in a lawsuit might feel intimidating, but there are protections to ensure your safety and privacy.

No Retaliation: Laws are in place to protect you from being punished by an employer or the defendant for participating in the case.
Confidentiality: Any sensitive or personal information you share during the case will typically be kept private to protect your identity.

Becoming a class representative is an important role that lets you advocate for fairness and justice on behalf of others.

While it requires some time and effort, the legal team will support you every step of the way. If you think you might be a good fit for this role, consider discussing your situation with an attorney to learn more about how you can make a difference.

Why Are Class Action Lawsuits Typically Relatively Large?

Judges are more likely to certify a class action when a large number of plaintiffs come forward.

This is because these cases are complex, costly, and time consuming to litigate.

When a large group of people suffered losses, it makes sense to consolidate them because it allows the attorneys and the court to work more efficiently. The fewer people involved, the lower this benefit.

If there are only a few members, it may make more sense to handle the cases individually instead of launching into the complicated litigation process. This allows each individual plaintiff to request compensation based on the merits of their own case, and receive damages based on their own situation.

What are the Advantages of Forming a Certified Class?

The goal of a class action lawsuit is to ensure those who suffered injuries or financial losses can recover compensation from the responsible parties. By consolidating all the similar cases into a single action, each individual victim does not have to pay for their own lawyer or go to court.

Instead, a single case serves as the class rep and that case’s legal team either negotiates a fair settlement or the judge rules the outcome of the case on behalf of all members.

This process is much cheaper and less stressful for the average class member than navigating an individual lawsuit against a large corporation.

While it can be difficult to receive class action certification with a small group, our firm will not hesitate to ask a judge to certify a class in your case if we feel it is appropriate.

Depending on the circumstances, our lawyers might pursue another civil procedure instead, including mass tort litigation which is sometimes possible with a small group of individuals.

What's the Difference Between a Class Action and an MDL?

Many people believe that multidistrict litigation (MDL) is essentially the same as a class action lawsuit, where a group of injured individuals collectively sues a company or manufacturer for damages.

While both legal processes aim to address similar grievances, they have distinct differences that can significantly impact the outcomes for plaintiffs.

Feature	Multidistrict Litigation (MDL)	Class Action
Filing Requirements	Cases must involve common questions of fact and law; filed in federal court.	Requires formal certification of the class by the court.
Cost Differences	Individual plaintiffs bear their own costs; shared costs for pretrial proceedings.	Costs are typically shared among class members, which may reduce individual expenses.
Timeline Expectations	Pretrial proceedings can take months to years; individual trials occur afterward.	Generally follows a single timeline for all members; can be quicker if certification is granted.
Control Over Litigation	Plaintiffs retain individual control over their cases post-pretrial; each case remains separate.	A single representative plaintiff controls the litigation on behalf of the entire class, limiting individual input.
Settlement Structures	Settlements are negotiated individually based on each plaintiff's circumstances; potential for varied awards.	Settlements are distributed equally or according to a predetermined formula among all class members.
Individual Rights	Plaintiffs can opt out of the MDL and pursue individual lawsuits; retain rights to negotiate settlements independently.	Class members are bound by the outcome unless they opt out before certification; limited ability to negotiate individually.

The primary difference between an MDL lawsuit and a class action is that a class action lawsuit is essentially one lawsuit with a single outcome. If the class action is successful, the settlement is split between the plaintiffs, after attorney fees and other costs are deducted.

Do You Get Less Money in a Class Action?

Contrary to popular belief, class action settlements are not divided among members evenly. Lead plaintiffs receive the most money in these claims. They typically have the worst injuries and the highest damages.

Breaking Down the Settlement Distribution

Courts approve a Settlement Distribution Scheme (SDS) to ensure fairness and transparency. This scheme outlines the criteria for dividing the funds among members.

Types of Payouts:

Lump-Sum Payments: A single pool of funds is divided among class members based on pre-established criteria.
Customized Compensation: Some settlements require individual assessments, tailoring payouts to the specific harm experienced by each member.

What Influences Your Share of the Settlement

Several factors determine how much each class member receives from a settlement. By understanding these elements, you can better prepare and maximize your potential payout.

Extent of Loss or Injury: Members with significant losses or injuries typically receive higher compensation than those with minor claims.
Involvement in the Case: Active participation, such as providing evidence or testimony, can affect the payout amount.
Supporting Documentation: Providing clear proof of your claim is essential for securing your share of the settlement.

How Long Until You Get Paid?

The timeline for receiving a settlement payment can vary based on the complexity of the case and administrative processes. Knowing what to expect can help you plan accordingly.

Court Approval: Settlements require court approval, which can take months and often includes a claim submission phase for class members.
Deadlines for Claims: Members are given 30 days to several months to file their claims after the settlement is approved.
Payment Timeline: Verified claims are typically paid out within a few months, but complex cases may take longer.

Taxes on Settlement Payments: What You Need to Know

Before you receive your settlement, it’s important to understand the tax implications of your payout. This ensures you remain compliant with tax laws and avoid unexpected liabilities.

Taxable vs. Non-Taxable Payments: Compensatory damages for physical injuries are usually tax-free, while punitive damages and interest may be taxable.
Seek Professional Advice: A tax advisor can help clarify how your specific settlement might be taxed and ensure compliance with tax laws.

Preparing Your Documentation

Proper documentation is key to verifying your eligibility and receiving your settlement payment without delays. Being thorough and organized can make this process much smoother. Class members must submit proof of their claims, such as:

Medical records for injury-related settlements.
Receipts or invoices showing incurred losses.
Relevant correspondence or evidence supporting the claim.

After you submit, a court-appointed administrator will review submitted documents to confirm eligibility and calculate payouts based on the approved scheme.

Understanding the settlement payout process can help class members navigate the complexities of receiving their compensation.

Knowing how funds are divided, what factors influence individual awards, and the necessary steps to meet deadlines can reduce stress and ensure a smoother experience.

If you have questions or require assistance, consulting a legal professional experienced in class actions is highly recommended.

How Much Does a Class Action Cost?

The exact cost of filing a lawsuit varies, depending on the length and complexity of each case. It takes a significant financial investment to investigate the wrongdoing, use legal options to obtain evidence, consult with expert witnesses, obtain class action certification, and fight the case in court.

Most firms take lawsuits on a contingency fee basis, which means that plaintiffs don’t have to pay the attorney unless they’re successful.

If they win the case, then they take a percentage of the settlement. Not every firm or attorney has the resources to file a class action lawsuit, which is why it is important to contact a skilled Class Action Lawyer to discuss your options.

How Do I Start a Class Action Lawsuit?

To successfully pursue a class action lawsuit, the class must meet the following criteria:

The class is large enough so that suing individually would be impractical
The class has a common interest with respect to the facts and laws of the case
The class representative’s claims accurately reflect other class members’ experiences
The representative is capable of fairly protecting and pursuing the interests of the entire class

If the class is certified, the class rep will move forward with the case on behalf of all class members.

Additional Information:

FAQs

1. What Determines the Size of a Class in a Class Action Lawsuit?

The size of the class depends on the number of people who have been affected by the same issue, which could range from a few to thousands of individuals.

2. How Does a Court Certify a Class Action Lawsuit?

The court must certify the lawsuit as a class action by determining that the claims of the plaintiffs are similar enough to be handled together in a single case.

3. What Happens if Not Enough People Join a Class Action Lawsuit?

If not enough people join, the court may still proceed with the lawsuit if the claims are substantial and can impact others similarly affected.

Get a Free Class Action Lawsuit Evaluation With Our Lawyers

The Class Action Law firm at Schmidt & Clark, LLP, is an experienced team of attorneys that focus on the representation of plaintiffs in Class Action Litigation. We are handling individual litigation nationwide and currently accepting new class actions in all 50 states.

If you think you may have a claim, you should contact our class action lawyers immediately for legal advice. You may be entitled to a settlement by filing a lawsuit and our firm can help.