If you feel let down or harmed by a company or an organization, whether you’ve received a defective product, been charged hidden subscription fees, or experienced any fair conduct violations, chances are you are not the only one.
You can always take legal action to claim compensation for the harm you’ve suffered, and if you believe your legal claim is shared by others, you may start a class action lawsuit together.
But how many people do you need for a class action lawsuit?
In this guide, we’ll break down the minimum requirements for a class action lawsuit, explore the concept of “numerosity,” and highlight the benefits of joining a class action.
Is there a minimum number of people for a class action lawsuit?
While there is no official number of people required to file a class action lawsuit, in practice, courts rarely certify a class with fewer than 20 members.
For example, 14 former University of San Francisco baseball players sued their coaches for creating “an intolerable sexualized environment,” but the court declined to certify their case as a class action (though they were still free to file individual lawsuits).
Generally, a group of at least a few dozen members has a solid shot at certification, and some class action cases involve hundreds of named plaintiffs and thousands of eligible class members.
One of the most notable examples is the 1999 Pigford v. Glickmann case, where more than 400 Black farmers sued the U.S. Department of Agriculture for racial discrimination in farm loan programs during the 1980s. The certified class ultimately included tens of thousands of members, who were eligible to share nearly $1 billion in settlement funds.
What are the minimum requirements for a class action lawsuit?
Under Rule 23 of the Federal Rules of Civil Procedure, the rulebook for class action lawsuits in the United States, a case can move forward as a class action if “the class is so large that joinder of all members is impracticable.” Put simply, the group must be big enough that it wouldn’t make sense for everyone to file separate lawsuits.
This is what the courts call numerosity. Besides being a basic requirement for starting a class action lawsuit, numerosity can also impact the strength of the case in court: the bigger the group, the more pressure there is on the defendant to settle, which often translates into a better chance of compensation for everyone involved.
Under Rule 23, numerosity is just one of the four criteria a case has to meet before it can move forward as a class action. The other three are:
- Commonality: Group members should have suffered the same or a similar kind of harm. They don’t all need identical claims, but they have to share “common questions of law or fact” that can be answered for everyone at once through a class action lawsuit.
- Typicality: Claims of representative or lead plaintiffs (those who take a more active role in the lawsuit and represent the interests of the entire class) need to be substantially similar to those of the other members of the proposed class. In other words, they need to have experienced the same or a similar type of harm to serve as reliable proxies.
- Adequacy of representation: The representatives must be able to adequately protect the interests of the entire class and act on behalf of absent class members. There should be no conflicts of interest that would prevent them from making decisions that benefit the whole class.
What factors impact the certification decision?
It’s up to the court to decide whether numerosity and the other three criteria from Rule 23 have been met. Since there’s no official minimum number of class members, the judges must decide whether to certify the group as a class on a case-by-case basis.
To make sure the decision is fair, the courts weigh a few key factors:
What are the benefits of joining a class action lawsuit?
Joining a class action lawsuit isn’t mandatory. Still, most people decide to stay a part of the class action for the following reasons:
- Lower costs: All participants in a class action lawsuit split the expenses, making the individual costs much lower compared to pursuing the claim alone.
- More leverage: Big companies can find their way out of individual lawsuits. It’s much harder for them to fight off hundreds of people with the same complaint.
- Better shot at smaller claims: Suing over $50 or $100 usually isn’t worth the hassle, but a class action lets you claim what you’re owed, no matter the amount.
- Quicker resolution: Settling a class action lawsuit typically takes less time than resolving dozens of individual cases, so you’re more likely to see your payout sooner.
You’re free to pursue your own case and opt out of the class action if you’re uncomfortable with the risks of joining a class action lawsuit or you believe you can claim more money by going solo.
Do you have to join a class action lawsuit to be eligible for settlement money?
No, you don’t have to officially join a class action lawsuit to receive the settlement money.
A class action lawsuit applies to two distinct groups of people:
- Named plaintiffs (class representatives): These are the people who actually start the class action lawsuit. They work with the lawyers, give testimonies, and represent the group’s interests in court.
- Class members: This refers to everyone who fits the description of class members in a given lawsuit, regardless of whether they’re even aware of the case.
If a class action lawsuit is resolved in the plaintiffs’ favor, either through a settlement or a court ruling, class members are generally eligible for compensation as long as they:
- Fit the class definition: For example, they bought a certain product during a specific time or worked for a particular company in a given period.
- Submit a valid claim form: To receive a class action lawsuit payout, class members are typically required to file a claim before a certain deadline, often with proof to back it up.
The only people who fit the class definition but won’t receive a payout are those who opt out of the class action or those who miss the claim deadline.
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How Settlemate makes claiming settlement money effortless
Many people don’t even realize they can get paid from a class action settlement without ever stepping into a courtroom, or they get overwhelmed with the process of filing claims, tracking deadlines, and gathering proof.
Settlemate helps on both fronts by automatically finding class action settlements you may qualify for and streamlining the claim-filing process. You can take what’s rightfully yours without hiring lawyers, sitting through lengthy court hearings, or paying hefty legal fees.
Settlemate is able to do this thanks to its advanced features, including:
- Automated scanning: With your permission, Settlemate scans your purchase history and email inbox for receipts and settlement notices to see if you’re owed money.
- Clear proof guidance: Settlemate notifies you if a particular settlement claim needs proof and explains what type of documents you need to submit.
- Pre-filled claims: Forms are pre-filled so you can file a claim in minutes, right from your phone.
- Real-time tracking: You get real-time updates on your claim statuses, deadlines, and payment estimates.
- Smart notifications: Settlemate sends alerts if there’s a new settlement you’re eligible for or when an existing claim moves forward.
Download the Settlemate app from the App Store or Google Play.
Our money-back guarantee makes it risk-free. If you don’t make more money from settlements than you spend on subscriptions in the first 12 months of using the app, you’ll get a full refund.
Frequently asked questions
We’ve rounded up answers to some of the most common questions about class action lawsuits and settlement payouts:
Are there state-specific rules about how many people are required for a class action lawsuit?
No, U.S. states don’t have specific rules regarding numerosity. State courts decide for themselves whether a group is big enough to be certified as a class, based on their own interpretation of numerosity and the nature of the case.
How much does a class action lawsuit pay per person?
Settlement payouts can range from a few dollars to thousands of bucks, depending on the type of harm, total settlement amount, and the number of lead plaintiffs and class members.
How is the settlement money distributed?
Contrary to popular belief, the settlement money isn’t split evenly. Lead plaintiffs (those who represent the interests of all class members) often receive a larger award for their time and effort. Individual payouts can also vary based on factors like the severity of each person’s loss and how long they were involved in the case.
