How do class actions work in the US?
US class actions are governed by Federal Rule of Civil Procedure 23 and state equivalents. A representative plaintiff sues for a class that the court must certify. In most damages classes, members are automatically included and receive notice with a chance to opt out; those who do not opt out are bound by the settlement or judgment.
How much do class action attorneys take in the US?
Class counsel fees are set by the court and commonly range from about 25% to 33% of the common fund, sometimes higher in smaller cases or lower in very large 'megafund' settlements. The court reviews the fee for reasonableness, often using a percentage-of-fund method with a lodestar cross-check.
Should I opt out of a class action?
Opting out makes sense when your individual damages are large and provable enough that an individual suit would likely net more than the per-member class payout. Opting out preserves your right to sue individually and control the case, but you assume the cost, time, and risk of litigating alone.
Why join a class action instead of suing individually?
For small or hard-to-prove individual losses, a class action is often the only economically viable path to any recovery. It requires no upfront cost or active participation, aggregates claims to create leverage, and spreads litigation risk. The trade-off is a smaller per-person payout and giving up individual control of the case.