Why are class action lawsuits such as the lawsuit on ranitidine worthwhile?
Class action lawsuits are worthwhile for two main reasons.
#1. They allow groups of people who otherwise could not afford to pursue litigation on their own fight for fair compensation and stand up for their rights.
#2 The allow the general public to hold large corporations or governments accountable for their actions.
Despite what you might hear about frivolous lawsuits. Attorneys will never pursue a class action without its first meeting particular set criteria.
#1 An egregious wrong has been committed
As much as the government and large corporations would like you to believe that class action is only pursued because of large payouts this is out the case.
These lawsuits are expensive, and an attorney is not going to pursue a case of this magnitude unless the chance of success is exceptionally high from the outset. Before they ever continue, class-action attorneys rigorously analyze every aspect of the suit to ensure an egregious wrong has been committed. This will increase the strength of their case and their chance of successfully getting a decision for their clients.
#2 Significant economic hardship has been caused.
Due to the resource-intensive nature of class actions they are extremely expensive to litigation. Before any attorney proceeds with such a lawsuit, they have to believe that the likely damages they would receive can benefit the members of the class action and not just end of being swallowed by attorney fees.
#3 A high probability of success
Attorneys are not going to pursue a class-action unless the prospect of recovering damages exists for the class members. Spending hours, days, weeks, and months, plus the potential for millions of dollars in pursuit of compensation that doesn’t exist. Unless they think they will win, it is unlikely a class will be filed to begin with.
Who pays for the class?
In the vast majority of class action lawsuits, law firms will run the case on a no-win-no-fee basis. To do this, they usually have to enlist the help of external funders. They will invest in the action, to be repaid from any compensation earned. The fact that someone with deep pockets is willing to enter into an agreement with a group of attorneys to cover the cost of their legal fees should tell you that a class-action is worthwhile.
If the case is settled, how will the money be divided?
When a class action is settled the money is then held in trust until the court will appoint an administrator for this trust. This person or persons will assess each individual member’s claim and how the funds should be distributed.
The court will approve a settlement scheme to allow the money to be equitably divided between claimants usually on a pro-rata basis. Each plaintiff may be asked to fill out a questionnaire detailing their claims of injuries or damages, teams of medical and other experts will assess the information given before arriving at a compensation figure for each member.
While this may seem extremely complicated, a class action in many cases will provide the only mechanism by which victims of negligence or wrongdoing will be able to stand up against companies. Most simply don’t have the resources to sue, an organization that has massively superior resources on their side. Without is the avenue of class-action claims far too many people would simply never have the means to seek compensation or redress within our legal system