An individual product-defect lawsuit pays more per winner than a class action. A class action pays a smaller amount to many buyers at once. A product-defect class action is a case where many buyers with the same product problem share one settlement fund. An individual lawsuit is a separate case where one injured person seeks payment for their own harm.
Official resources:
- Explore the official data from Consumerfinance — Use this primary source to review the underlying data.
- Read the official notice from Cornell — Use this primary source to verify the official announcement.
Table of Contents
- How much does each option pay?
- Why are class payments smaller?
- What risk comes with suing alone?
- Can you leave the class and sue alone?
How much does each option pay?
Individual trial winners often receive far larger single payments than class members. The Bureau of Justice Statistics reported a median $350,000 award for plaintiff winners in federal product-liability trials in 2002-2003, compared with $201,000 for all tort trials, in its federal trial statistics release. Consumer class payouts are much smaller per person.
The Consumer Financial Protection Bureau found about $1.1 billion in cash divided among 34 million members in its 2015 class-settlement study, an average of $32.35 each, in its arbitration study report to Congress. Consumer Action, summarizing an FTC review, found half of reviewed settlements offered average awards of $69 or more. One-quarter offered $200 or more.
Why are class payments smaller?
A class fund is divided among thousands or millions of buyers. Fees for class counsel and settlement administration also reduce the net amount shared by claimants, under Rule 23(h) described in the Cornell Legal Information Institute text of Rule 23.
The trade-off is reach and ease. Consumer Action, summarizing the FTC, found about 80% of consumers receiving automatic $50-$100 payments cashed checks. Filing-based claims had lower claim-and-cash rates.
- Small loss, proof of purchase, no injury: class claim often fits.
- Medical bills, lost work, lasting injury: separate case may fit.
- Strong defect proof and large costs: ask a lawyer about suing alone.
What risk comes with suing alone?
An individual suit carries a high risk of losing. The Bureau of Justice Statistics reported that product-liability plaintiffs won only 34% of federal trials in 2002-2003, in its federal trial statistics on wins and trial rates. Most cases never reach a jury.
The same Bureau report found only about 2% of tort cases reached trial, with 98% resolved otherwise. That path also takes more time, money, and proof. A single plaintiff must link the defect to the injury, face company lawyers, and may pay expert and filing costs.
Can you leave the class and sue alone?
Yes, an injured buyer can often opt out and pursue an individual product-defect suit. Federal Rule 23(b)(3) lets class members request exclusion after notice, as explained in the Cornell Legal Information Institute's full text of Federal Rule 23. Read the class notice as soon as it arrives.
It identifies the product, the time period, the proposed payment, and the exclusion deadline. Do not file both tracks for the same injury without legal advice. Staying in the class usually trades a possible larger award for a smaller, faster, lower-risk payment.