What Is a Class Action?

Put simply, a class action is when a large group of people sue the same company for the same reason and seek compensation. For example, Company A sells a new computer to 1,000 customers. If 600 of them discover that the screen has quality issues, 50 of those customers could join together to sue Company A for damages. Once the requirements for a class action are met, those 50 people can represent all 1,000 customers who bought that computer in the lawsuit over the screen issue. If you do not object to the class action, you are automatically included, and later you generally cannot sue again over the same issue. Any compensation ultimately obtained would then be divided among those 1,000 customers equally (assuming everyone has no objection and all file a claim). Of course, you can also opt out of the class action, in which case you keep the right to sue on your own and seek compensation separately.

Class actions are usually handled by specialized attorneys, often on a contingency-fee basis. In other words, the attorneys get paid only if they win; if they lose, they do not get paid. In that situation, whether you started the class action or are simply part of it, you generally do not need to pay legal fees out of pocket. You just wait for the final hearing, a court-awarded payout, or a settlement amount negotiated by both sides’ attorneys, and then claim your share.

Many people may feel class actions are far removed from everyday life, but in reality quite a few of them affect ordinary consumers like us. Often, the only reason you miss them is that you are not paying attention. Here are some examples we have previously covered on this site:

As you can see, many class actions touch all aspects of our daily lives. If you keep an eye out, there may be quite a bit of compensation that applies to you. Here we will use the recent high-profile Move Free class action as an example to explain the general process:

How to Find Class Action Information

After a settlement is reached, the company is usually required to publicly announce the compensation through newspapers or similar means, but they generally will not go out of their way to contact you directly. Some merchants may push related news to you based on the lawsuit, as happened recently with the Move Free class action. So pay attention to your email for keywords such as Class Action Settlement.

Amazon is emailing you because our records indicate that you may have purchased Schiff Move Free® Advanced, Move Free® Advanced Plus MSM, or Move Free® Advanced Plus MSM & Vitamin D from May 28, 2015 to June 24, 2021.  If so, you may be entitled to receive a cash payment from a $50 million class action settlement.  In Yamagata v. Reckitt Benckiser, LLC, Case No. 3:17-cv-03529-VC (N.D. Cal.) , a federal court in California preliminarily approved the settlement of a class action lawsuit involving claims that these Schiff Move Free® Advanced supplements were falsely advertised.  The defendant in the lawsuit denies these claims.

Usually, each class action has its own dedicated website where you can track progress and review details. For example, here is the website for the Move Free case:

In addition, if a product around you seems to have caused the same issue for many people, you can search for it yourself or watch for any related settlement news, such as the iPhone battery issue. You are also welcome to follow our site. If there is a class action with broad impact, we will publish it as soon as possible.

  • Subscribe to our article updates

[mc4wp_form id="4030"]

  • Follow our WeChat official account

Decide Whether to Participate in a Class Action

To be safe, it is a good idea to first read the details of the class action and see how much it affects you. In the Move Free case, for example, you can choose to:

  • Participate in the class action and submit a compensation claim form, which means you accept the settlement and cannot sue the company again over the same issue
  • Not participate in the lawsuit; of course, you would not receive settlement compensation, but you would retain the right to sue the company on your own (for the same or a different claim)
  • Object; you can disagree with the class action settlement, but you can still receive your compensation in this lawsuit
  • Attend the court hearing, if the settlement is not successfully finalized
  • Do nothing and submit no form; you will not receive compensation, and you will not be able to participate in or influence the outcome

Besides deciding whether to participate, be sure to pay attention to the deadlines.

Your Choice Result Deadline
Submit a claim form Receive approximately $22 in cash per bottle under the settlement agreement November 8, 2021
Exclude yourself from the settlement Be excluded from the settlement and retain the right to sue on your own October 14, 2021
Object to the settlement Submit an objection to the court, but still be allowed to file a claim form. If the court still approves the settlement, you will remain bound by it October 14, 2021
Attend the fairness hearing You may attend the hearing in person
Do nothing You will not receive compensation and will also give up your right to sue on your own

Generally speaking, once you accept a settlement, you cannot sue the merchant again over the same issue. To use an extreme example, if Move Free caused such severe harm that you spent months in emergency treatment and racked up millions of dollars in medical bills, while most people simply found that Move Free did not work, then you probably should not participate in the same class action as everyone else. You could instead file an individual lawsuit over your own situation.

Understand the Terms of the Lawsuit and the Key Dates

There are usually several key points you need to understand in any class action:

  • Coverage: The first thing to confirm is whether you qualify for the class action. In this case, you had to purchase certain Move Free products in the United States between May 28, 2015 and June 24, 2021 to be eligible. The purchase also had to be for personal use, not for resale.
You may be entitled to these Settlement benefits if you purchased Move Free Advanced glucosamine supplements in the United States between May 28, 2015 to June 24, 2021 (purchased for purposes other than resale) .
  • Required documentation: For class actions related to consumer purchases, some settlements require proof of purchase, such as receipts. Others do not require receipts for smaller quantities. In this case, for example, no receipt is required for 3 bottles or fewer.
If you request an award for 3 bottles of Move Free Advanced or less, no proof of purchase is necessary. If you request an award for more than 3 bottles of Move Free Advanced, you must provide proof of purchase for each of those units purchased between May 28, 2015 and June 24, 2021 that you are claiming.
  • Compensation amount: Most class action settlements disclose the total settlement amount and an estimate of how much each person may receive. In this case, Move Free agreed to a 50,000,000 settlement fund, which includes the $22 per bottle payment to claimants as well as attorneys’ fees. A harsh reality is that lawyers usually get the biggest share, while consumers often receive only a small amount...
The Settlement offers a Cash Payment award of $22 per bottle purchased. This award is based on the $22 average retail price of Move Free Advanced. Award amounts may be increased, up to $66 (or more) per bottle purchased, or decreased depending on the total collective value of the claims made by Class Members and other factors specified in the Settlement Agreement.

The $50 million Settlement Fund will provide Cash Payments to Class Members who submit valid claims. Class notice and claim administration expenses, Plaintiffs’ Counsel’s attorneys’ fees and expenses and any service awards to the Class Representatives (discussed below) will also be paid out of the Settlement Fund, if approved by the Court. The Settlement distribution process will be administered by an independent Settlement Administrator approved by the Court.

  • How to receive payment: In the past, class action settlements were usually paid by check, and distributions were extremely slow, often taking 1-2 years. So it is best to use a stable mailing address. Otherwise, if you move and miss the check, it can be a real hassle. These days, many class action settlements also offer payment via PayPal, which is much more convenient.
  • Payment timeline: The court usually confirms the timeline at the approve hearing. But distributions generally take a long time, so be prepared to wait 1-2 years.
The Court will hold the Final Approval Hearing on October 28, 2021 at 2:00 p.m. (which is subject to change) , to decide whether to approve the Settlement. Even if the Court approves the Settlement, there may be appeals. The appeal process can take time, perhaps more than a year. You will not receive your Cash Payment until any appeals are resolved. Please be patient.
  • Deadline: There is a deadline to submit the claim form. If you miss it, you get nothing, so do not wait until the last minute. In this Move Free case, for example, the deadline was November 8, 2021.

How to fill out the claim form

Once the settlement details are released, there is usually a dedicated website where you can enter your personal information and payment details for the claim. Just follow the steps on the website.

  • You will need to provide your personal information
  • Enter the number of units purchased; if you claim more than the allowed amount, you will need to submit receipts as proof
  • Select your payment method

Conclusion

In the U.S., class action settlements are not as far removed from everyday consumers as they may seem. Do not miss opportunities to claim compensation when you qualify. It is important to understand both the terms and the deadline.

That said, attorneys usually take the biggest share in class action settlements, and the companies being sued often use settlement agreements to reduce potentially much larger future risks. In the end, consumers may receive only a small payment after a long wait, while also giving up the right to continue suing. Whether that is truly fair or just is open to debate.