When should you join a class-action lawsuit?

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When should you join a class-action lawsuit?
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There's usually no harm in joining, but there are sometimes opportunities for potentially earning a much larger payout by taking another route

It might have happened to you a few times in past years: You received an email or mail notice inviting you to join a class-action lawsuit, or notifying you that you’ve been automatically included. But being part of such a lawsuit might be intimidating, especially if you need to opt in, and would mean surrendering the option to sue individually.

Why you should join In many cases, class-action lawsuits offer such a minor payout to each victim that participation is a matter of principle, not reward. But even if you receive only $10 to $20 as compensation, joining a collective lawsuit can help other customers or employees get justice, and may deter a company from harmful practices in the future.

If you’re part of the “class” of a lawsuit — that is, if you were affected by the certain event or purchase described — you’ll often be automatically included in the lawsuit. And for certain cases, such as those relating to wage violations or defective products, you may have to opt in.Class representatives don’t always get a larger payout If you feel strongly about the outcome of a class-action lawsuit, you can also participate as a class representative, sometimes called a lead plaintiff.

“If you have your own lawsuit, the value of your claim might be much, much higher as an individual than it would have been as a class member,” says Gerald L. Maatman Jr., a partner at Duane Morris and the chair of the law firm’s workplace class-action group. “You’re trying to decide, ‘If I opt out, am I going to do that much better than I’d do in a class action?’ And in certain circumstances, an individual would do better. They’d get the money quicker, and they’d get more money.

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