>> class actual settlements are Usually underwhelming
not for the firms that bring them: millions in fees & billing, ranging from the upfront certification efforts (riskier) to the payment & settlement (at this stage, risk-free and very lucrative)
I preface this by saying I’m not ok with how this is. I’m just explaining the reasons “class action” lawsuits are the way they are.
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That’s because the purpose of “class action” lawsuits isn’t to provide relief to the harmed class (despite what many think). It’s to punish the company (financially) for their wrongdoing. It doesn’t always work out that way,[a] but that’s the idea.
The reason (supposedly) for not getting relief is that the injured class members can still file their own cases against the company with their own lawyers. But then you need to pay out-of-pocket for that lawyer and hope the judge not only sides with you, but awards cost in addition to the claimed damages.
Of course, there’s always the perverse incentive of the lawyers working for the class to take a bigger cut for themselves (“why would I take a $5 million payday when I could get $15 million instead?”). There’s also a push to settle because then they work less, but still get their payday.
[a]: Especially if the payout is less than they made harming the class
not for the firms that bring them: millions in fees & billing, ranging from the upfront certification efforts (riskier) to the payment & settlement (at this stage, risk-free and very lucrative)