You buy a product that turns out to be defective or your data gets stolen in a massive corporate breach. You start seeing headlines about lawsuits, settlements, and payouts. But when you look closer, the terms get confusing: class action or multidistrict litigation (MDL). Which one actually applies to you?
The truth is, both class actions and multidistrict litigations (MDLs) are ways for large groups of people to hold powerful companies accountable. But they do it in very different ways.
Understanding the difference can determine how much money you recover, how long it takes, and what rights you give up.
MDL vs class action? This guide breaks it all down with real examples from recent product and data breach cases, so you can identify which process you're in and what to do next.
Key takeaways:
- Class actions and MDLs work differently but share the same goal: Both help large groups of people recover money from corporations, but the structure matters. A class action is one case representing many people, while an MDL is many individual cases handled together for efficiency.
- Your level of involvement determines your next steps: Courts automatically include class action members unless they opt out, while MDL plaintiffs must file their own lawsuits and stay in touch with their attorneys for updates, discovery, and settlement offers.
- Timelines, payouts, and control differ: Class actions result in a shared payout approved by the court, often modest due to the large number of claimants. MDLs can lead to higher individual recoveries, but cases take longer and require more involvement from plaintiffs.
- Settlemate helps you claim what’s yours easily: Settlemate automatically finds active class actions, fills claim forms, tracks payouts, and sends deadline reminders.
What is a class action?
A class action is one lawsuit filed for a large group of people who were affected in the same way. One person, known as lead plaintiff, represents everyone else in the group, or "class."
Federal class actions follow Rule 23, which requires that the group be large enough, share common issues, and have fair representation. Once the court certifies the class, a single judge and one legal team handle the case on behalf of all members.
If the case settles, the judge must approve the agreement as fair. Class members then receive a notice explaining what the case is about and how to file a claim. Anyone who stays in the class will share in the result, while those who opt out can file their own cases separately.
Key points:
- One outcome applies to everyone who stays in the class.
- Members receive a notice and must follow the instructions to claim payment.
- Court-approved lawyers represent the class.
- Federal courts handle most large consumer cases under the Class Action Fairness Act (CAFA).
Recent real-world examples:
- Poultry industry wage-fixing settlement – $398 million: In June 2025, a federal judge approved a $398.05 million settlement resolving claims that major poultry processors conspired to suppress worker pay over two decades.
- Disneyland living wage settlement – $233 million: A California judge finalized a $233 million settlement between Disney and more than 51,000 Disneyland employees who alleged the company failed to comply with a local living wage ordinance.
- New York taxi license suspension settlement – $140 million: Thousands of New York taxi and for-hire vehicle drivers secured a $140 million settlement after challenging the city's long-standing practice of suspending licenses based solely on arrests without convictions.
What is an MDL (Multidistrict litigation)?
An MDL is a system that organizes many individual lawsuits filed across the country that involve similar facts or issues.
Under 28 U.S.C. § 1407, a federal panel known as the JPML can transfer those cases to one judge for coordinated pretrial work. This method saves time and ensures consistent rulings while each plaintiff keeps an individual case and their own lawyer.
MDLs do not create a single lawsuit or a class. Each case remains separate and may return to its original court for trial after the shared pretrial steps are complete. Courts handle MDL settlements individually, and each plaintiff decides whether to accept an offer.
Key points:
- Each plaintiff keeps their own case and lawyer.
- MDLs focus on efficiency and consistency before trial.
- There is no class certification or automatic payout.
- A new rule, FRCP 16.1, standardizes early MDL coordination starting in 2025.
Recent real-world examples:
- Earplug defect MDL – ~$6 billion settlement: In the long-running MDL concerning defective military earplugs, the manufacturer agreed to pay around $6 billion to resolve hundreds of thousands of claims that the earplugs caused hearing loss and tinnitus.
- Hair relaxer MDL – Over 10,000 lawsuits pending: In the MDL consolidated over claims that chemical hair relaxers have caused hormone-related cancers in women, more than 10,000 individual lawsuits are now pending.
- Herbicide exposure MDL – Claims over 6,000 and settlement framework in motion: In the MDL centered on exposure to the herbicide Paraquat, the federal docket lists more than 6,400 lawsuits related to Parkinson's disease.
Key differences: MDL vs class action
The table below summarizes how MDLs and class actions compare on essential points:
How to tell if you're in a class Action or an MDL
If you hear about a lawsuit involving a company that affected you, it can be confusing to know what kind of case it is or how you fit into it. Class actions and MDLs often sound similar, but the way you become part of them and the steps you take are entirely different.
Here's how to tell the difference:
1. Check the name of the case
Look at the title or heading on any notice, email, or court document.
- A class action usually includes the words "Class Action" and cites Rule 23 or a similar state rule. The title often looks like "John Doe v. Company, et al., a proposed class action."
- An MDL is often labeled "In re [Product] Litigation, MDL No. [number]." It might also mention that it was "Transferred by the JPML" to a specific federal judge. If the title includes "MDL No.", that identifies it as a multidistrict litigation.
2. Check the court and docket
The court listed in your documents reveals a lot.
- Class actions can appear in state or federal court. Federal courts move many large consumer cases under the Class Action Fairness Act (CAFA).
- MDLs always take place in federal court. If you filed your own case and later received a notice that the Judicial Panel on Multidistrict Litigation centralized your case, you are in an MDL.
3. Read the notice language
The wording of a notice is often the clearest clue.
- A class action notice explains your rights with phrases such as "you may submit a claim," "you may exclude yourself," or "you are entitled to payment if you qualify." It also provides a website, claim form, and filing deadline.
- MDL notices are rarely sent directly to individuals. Communication usually goes to attorneys. Personal notices only arrive if the parties reach a settlement and you are a named plaintiff.
4. Understand your role
How you joined the case tells you which type it is.
- In a class action, the court automatically includes you unless you choose to opt out. You do not need to file a lawsuit yourself. If you received an email or letter explaining how to claim a payment, that is part of a class settlement.
- In an MDL, you or your attorney must have filed an individual lawsuit. If the court moved your case number into a larger group docket for coordinated proceedings, that means you are part of an MDL.
Knowing the type of case helps you understand how the court manages your claim, who represents you, and how the administrator distributes payments. If you are unsure, check official settlement websites, contact the listed settlement administrator, or speak with your attorney for confirmation.
Checklist for class action participants
If you’ve received a class action notice, the next steps matter. Following the instructions carefully can make the difference between getting your share of the settlement and missing out entirely.
Use this checklist to stay on track:
1. Check for a formal notice
Look for an official document titled “Notice of Proposed Settlement.” It confirms that you’re part of the class and explains your rights. The notice will list important deadlines for opting out or filing a claim. Mark those dates on your calendar right away.
2. Make your decision
Decide whether you want to stay in the class or opt out. Staying in means you’re eligible for a payout once the court approves the settlement. Opting out means you will not receive any money from this case, but you can file your own lawsuit separately.
3. File your claim
If you stay in, submit your claim form before the deadline. Most settlements require a short online or mailed form. Some may automatically include you if you qualify, but ask you to confirm payment details.
4. Check the settlement website
Every approved class settlement has a dedicated website where you can read official updates, view documents, and find claim deadlines. Keep a copy of any confirmation or claim ID you receive for your records.
5. Understand the payout
Class settlements often divide funds among thousands of people, allowing payments to be modest. Some settlements pay everyone the same amount, while others base payments on individual losses.
6. Keep records
Hold on to any documents that prove your eligibility, such as receipts, account statements, or product registrations. If the administrator needs to verify your claim, you’ll have the documentation ready.
Checklist for MDL plaintiffs
If your case is part of a multidistrict litigation (MDL), it remains your individual lawsuit, even though it’s grouped with others for efficiency.
Use this checklist to stay organized throughout the process:
1. Stay in contact with your lawyer
Your attorney is your main point of communication. They receive all MDL notices, leadership updates, and scheduling orders. If there’s a settlement offer, your lawyer will explain your options, guide you through the claim process, and help you decide what’s best for your case.
2. Monitor the MDL status
You can track progress by checking the public docket on PACER or visiting the JPML website for transfer orders and status updates. Courts and legal news outlets often report major settlements or rulings. Ask your lawyer to keep you informed about any noteworthy developments.
3. Prepare for discovery and hearings
Because MDLs coordinate pretrial discovery for all cases, you may need to provide documents, answer written questions, or give a deposition. Sometimes you’ll be asked to attend a case conference, which can happen remotely. Respond promptly to your attorney’s requests to keep your case compliant.
4. Be ready for a settlement
If the defendants propose a global settlement, your lawyer will contact you about the next steps. You should submit a claim form or provide documentation to confirm eligibility for payment. Each plaintiff’s recovery depends on the strength of their individual claim and the settlement’s structure.
5. Understand the trial process
If the parties do not settle, your case may return to the original court for trial. The MDL judge may select a few representative “bellwether” cases to try first. These early trials help both sides estimate potential outcomes and guide future negotiations.
6. Review your fee agreement
In MDLs, each plaintiff pays their own lawyer’s fee, usually a percentage of the recovery. There is no shared “class counsel” arrangement as in class actions. Confirm your fee structure with your attorney early in the process so you know what to expect when the administrator distributes compensation.
Your role in an MDL vs class action: How Settlemate fits in
The idea that companies can keep your money and you just have to let it go is outdated. Today, stronger consumer laws, active courts, and more innovative tools make it easier than ever to claim what’s yours. Settlemate helps turn missed notices and hard-to-find refund pages into real cash in your account.
Here’s how Settlemate makes the process simple:
- Instant eligibility checks: Settlemate reviews your past purchases and services, then instantly matches you with active class actions, refunds, and regulatory payouts.
- Auto-filled claims: The app completes forms with verified details and guides you through any missing steps.
- Real-time tracking: Track your claims from submission to approval to payment, and get notified when a new class settlement becomes available.
- Deadline reminders: Settlemate alerts you before a claim closes and when a payout is ready, so you never miss your window.
Where Settlemate fits in the MDL vs class action discussion:
- In a class action, Settlemate helps you find eligible settlements, file claims, and stay updated through the entire process.
- In an MDL, your attorney handles your individual case, while Settlemate keeps you informed about related class settlements that might also apply to you.
Complex legal systems shouldn’t stand between you and your money.
Download Settlemate on the App Store or Google Play and start reclaiming what’s yours today.
