> Settlements apply to anyone who could be a potential victim and strip them of their rights to sue, unless they opt out (this is insane to me!).
How would you solve the problem that class action suits are trying to solve while fixing the problem that someone else might end up speaking for you without you wanting them to? Note that this feature isn't specific to settlements; it also happens with judgments.
Direct government intervention seems like a better solution to most class action lawsuits.
Company causes significant harm to millions of people, gets shut down or massive fines seems like a better solution than having them send out a token payment vastly smaller than the harm caused. The first is an existential threat, the second just becomes the cost of doing business.
Class action lawsuits sit in a strange middle ground where reputation damage isn’t enough but the government doesn’t care or the penalties are too small.
How would you solve the problem that class action suits are trying to solve while fixing the problem that someone else might end up speaking for you without you wanting them to? Note that this feature isn't specific to settlements; it also happens with judgments.