Ever heard about a class action lawsuit and thought, “Those things last forever! No way I’ll ever see a penny.”
Your gut’s not lying to you — class action lawsuits do take time, but they can be worth the wait. What you’re owed can ultimately cover groceries, gas, or a utility bill when cash is tight.
If you don’t want to miss out on unclaimed money, knowing how long class action lawsuits take and when to expect the payout can be a major advantage. We’ll walk you through their main stages with timeline estimates and explain what factors can speed up or slow down these lawsuits.
You’ll learn how tools like Settlemate can help you act faster on class action settlement claims through automated alerts and a streamlined, hassle-free filing process.
How long does it take to get paid from a class action lawsuit
A class action lawsuit is a legal case where a group of people who’ve suffered the same harm or wrongdoing file a joint lawsuit to hold the corporation or institution in question accountable. If the lawsuit succeeds or settles, anyone who fits the description of a class member can claim their share of the compensation — without hiring a lawyer or setting foot in a courtroom.
Class action payouts aren’t instant as they depend on multiple variables. On average, you’re looking at one to three years, but the actual timeline may differ wildly based on factors like the size and complexity of the case and the defendants’ (the company being sued) willingness to settle.
Here’s the kicker — your entitlement to money doesn’t guarantee you’ll get it right away. To get paid for an eligible claim, you’ll need to:
- Submit your claim form correctly within the cutoff date
- Share evidence, such as a receipt (in some cases)
- Give your accurate payment information
- Track your claims status regularly
While you can control how you file your claim, the lawsuit timeline is the biggest external variable in when the money hits your account.
5 key stages of a class action lawsuit: A timeline breakdown
Class action lawsuits involve five critical phases, each potentially impacting the time it takes to get your payout.
*The durations are general estimates and vary on a case-by-case basis.
1. Investigation & filing
The first step of any class action lawsuit is the investigation. This is when lawyers review claims, collect evidence, and decide if the problem impacts enough people to start a lawsuit.
Duration: This stage typically lasts from two to six months, depending on how complicated the case is and how easy it is to collect proof. For simpler consumer cases, it may take only a couple of months, while medical or environmental claims can drag on for more than a year.
2. Class certification
Once the lawsuit is filed, it’s up to the court to decide whether it can move forward as a class action or if it needs to be split into multiple individual cases.
Typically, the court confirms (or certifies) that enough people have been wronged in the same way. There’s no magic number here, but if dozens, hundreds, or even thousands of people are in the same boat, the court will likely find it practical to handle one big class action lawsuit over a pile of individual ones.
In this phase, the court spends considerable time ensuring that the representative plaintiffs can fairly speak for all class members.
Duration: Getting the court to certify the class may take as little as six months, but it can also stretch up to two years if the defendants try to challenge the certification.
3. Discovery
Discovery is the backbone of the class action lawsuit and often its longest, most unpredictable phase. This is where both sides exchange evidence, documents, and information to build their cases. For modern class actions, this often means digging through terabytes of data like emails, server logs, and invoices.
Duration: Depending on the volume of evidence, this stage can take 1–3 years. On top of that, the parties can take depositions and interview witnesses and experts, which may stretch things even further, especially when it comes to complex tech or medical cases.
4. Settlements, trials, and appeals
Most class action cases never reach trial — they end in a settlement after elaborate negotiations that may go on for several days to months. These discussions focus on the compensation amount and the final terms of settlement.
Then, the court must give preliminary approval, while the administrators must notify all the class members. The judge will review the proposed settlement to make sure it’s fair and reasonable for every class member — a final “quality check” before the compensation is officially approved.
If there’s no settlement, the case goes to trial, where it will be decided by a court ruling. The trial can take several more months, plus additional time for appeals if either side wants to challenge the verdict.
Duration: Settlement and trial can take between three months to over two years. Potential appeals can extend the timeline by 1–5 years or more.
5. Claims process & distribution
Once the court approves the settlement or delivers a verdict, the class action lawsuit moves to the most tangible step: distributing the settlement money.
Eligible class members are notified, usually via mail, email, or public notice, to file a claim form and receive their share of the settlement money. Once the claims are verified, settlement payments are usually distributed via check, direct deposit, or prepaid cards. While some class members may access their money quickly, others might wait longer if they’re required to submit additional documentation.
Duration: The process can last from six months to a year, depending on the number of class members and how quickly the settlement administrators can verify claims, calculate proportionate shares, and subtract attorney fees.
What factors can impact the timeline of a class action lawsuit?
Given how timelines swing, class action suits can sprint ahead or crawl like a car stuck in rush-hour traffic. Here are the key factors that impact the wait time:
- Case complexity and evidence volume: The more complicated the legal issues and the more evidence involved, the longer the case is likely to last.
- Class size: Class actions involving hundreds or thousands of people require a great deal of coordination to notify everyone, process claims, and manage mass documentation. This can add weeks or months to the average timeline.
- Court backlog: If the court docket and judges are overloaded, your case might move slowly due to scheduling delays.
- Defendant's strategy: Companies may sometimes stall the case on purpose to buy time or wear down plaintiffs. Others may want to settle faster to avoid public or legal scrutiny.
- Appeals and post-trial motions: Even after a verdict or settlement approval, the losing party may appeal the decision, potentially postponing final resolution and payment by months or even years.
Real-life class action lawsuit cases and their timelines
To get a better idea of how long class action lawsuits can take, let’s take a look at a couple of real-world examples:
While these timelines vary, missing a critical process or cutoff date can slow things down even further — and even cost you the payout.
If you’re proactive about claiming what’s due, you can use advanced claim settlement apps like Settlemate to find the right claims and speed up the process on your end.
How to automate your class action claims with Settlemate
Filing claims manually can be slow, confusing, and downright frustrating. Billions of dollars in settlement money go unclaimed every year because most people are unaware of eligible claims or find it hard to manage the procedural aspects like tracking deadlines and requirements across multiple settlements.
That’s where Settlemate comes to the rescue.
We help you recover the money you’re already owed by making the whole claims process streamlined. We do it with a handful of smart features:
- Automated scanning: Settlemate can spot the settlements you qualify for by offering to scan your purchase history and emails, making sure you never miss out on a payment opportunity.
- Pre-filled claims: Pre-populated forms allow you to make a claim straight from your phone — without hiring lawyers or navigating legal texts.
- Clear proof guidance: Settlemate lets you know whether evidence is required for each eligible settlement and what kind of documentation you need to submit.
- Real-time tracking and notifications: Stay on top of your claims with live updates, payout estimates, and deadline tracking. You’ll even get real-time alerts whenever a new settlement becomes available.
How does Settlemate work?
To get started with Settlemate, all you need to do is download the app App Store or Google Play.
Once signed up, you can start applying for ongoing eligible settlements effortlessly with pre-filled forms and stay in the loop with real-time updates on your claims and payouts.
Settlemate’s refund policy makes sure that you make more money from the platform than you invest in it. If the class action payouts, refunds, or savings you get in the first year don’t cover the cost of your subscription, you may be eligible for a full refund.
Frequently asked questions
We’ve answered some of the most common questions people have about class action lawsuits and settlement payouts:
What is the average payout for a class action lawsuit?
Class action settlements can be worth millions or billions of dollars, but the individual payouts depend on the number of claimants. Payouts average around $50 in huge cases with thousands of claimants.
Is it worth getting involved in a class action lawsuit?
Joining class action lawsuits does carry some minor inconveniences, such as limited personal control over the case or additional taxes. Still, it’s the only way for many people to hold big corporations accountable and get the compensation they deserve.
Do I have to pay taxes on class action settlement money?
Whether you’ll have to pay taxes on class action settlement payouts depends on the nature of the claim you make. Typically, payouts for physical injuries or illnesses aren’t taxed, but the money you get for lost wages, punitive damages, or interest will be taxable.
