What is a class action lawsuit?

A class action is a lawsuit where one person — or a small group — sues a company on behalf of a large number of people who were all harmed in the same way. Instead of thousands of people each filing their own case, the court lets them combine into a single case called a "class."

Why class actions exist

Most class actions involve a small harm spread across a huge number of people. Say a company overcharged ten million customers by $15 each. No one is going to hire a lawyer and sue over $15 — the cost of the case would dwarf what you'd win. But $15 times ten million is $150 million, and that's worth a lawsuit.

Class actions make it practical to hold companies accountable for harms that are too small to sue over individually but enormous in aggregate. They also mean a company faces one case instead of thousands, and everyone harmed gets treated consistently.

Who's who in a class action

• The class — everyone who fits the case's definition (for example, "everyone who bought Brand X sunscreen between 2020 and 2023"). If you fit the definition, you're a class member, usually automatically — you don't have to sign up.
• The lead plaintiff (or "class representative") — the named person who stands in for the whole class. Their experience has to be typical of everyone else's.
• Class counsel — the law firm representing the class. They're usually paid out of the settlement, not by you.
• The defendant — the company being sued.

How a case usually plays out

1. Filing. A lawsuit is filed alleging the company harmed a group of people.
2. Certification. A judge decides whether the case can proceed as a class action — whether the group is well-defined and their claims are similar enough. This step is a big deal; not every case gets certified.
3. Settlement or trial. The vast majority of class actions settle — the company agrees to pay a sum to resolve the case without admitting it did anything wrong. A small number go to trial.
4. Approval. A judge has to approve any settlement as fair to the class, at a hearing called a final approval or fairness hearing.
5. Payout. After approval (and any appeals), the money is distributed to class members who filed a claim.

What this means for you

If a class action covers something you bought or a service you used, you're probably already a class member — but being a class member doesn't mean a check shows up automatically. In most settlements you have to file a claim by a deadline to get paid — and first it helps to check whether you actually qualify. Missing the deadline is the single most common way people miss out on money they're owed.

ClaimWatch exists to translate these settlements out of legalese so you can quickly see what a case is about, whether you qualify, and how to claim your share.

This is general information, not legal advice. Every settlement has its own rules. Always confirm the details on the official settlement website before acting.