Class action lawsuits come with their own vocabulary. Whether you have received a settlement notice in the mail, are trying to file a claim, or simply want to understand the process, this glossary covers the most important terms in plain English.
Class Action Lawsuit
A lawsuit filed by one or more people on behalf of a larger group who were all harmed in the same way by a company or organization. Instead of thousands of individual lawsuits, a single case represents everyone.
Settlement Administrator
The third-party company hired to manage all the logistics of a class action settlement, including sending notices, processing claims, verifying eligibility, and distributing payments to class members.
Class Member
Any person who falls within the group defined by a class action lawsuit. If you bought the product, used the service, or were otherwise affected during the specified time period, you are likely a class member.
Proof of Purchase
Documentation that shows you actually bought the product or used the service at the center of a class action. Receipts, bank statements, and order confirmations all count as proof of purchase.
Claim Form
The official document you submit to collect your share of a class action settlement. It asks for your personal information, details about your purchase or experience, and sometimes proof of purchase.
Settlement Fund
The total amount of money a defendant agrees to pay as part of a class action settlement. This fund is divided among all class members who file valid claims, minus legal fees and administrative costs.
Opt Out
The process of excluding yourself from a class action settlement so you can pursue your own individual lawsuit. By opting out, you give up your share of the settlement but retain the right to sue on your own.
Statute of Limitations
The legal time limit for filing a lawsuit after the harm occurred. Once the statute of limitations expires, you generally cannot sue, even if you have a valid claim.
Lead Plaintiff
The individual or small group of individuals who represent the entire class in a class action lawsuit. They work closely with the attorneys, make key decisions, and their claims must be typical of the class as a whole.
Cy Pres
A legal doctrine that directs unclaimed settlement money to charitable organizations or causes that benefit the class members, rather than returning it to the defendant. Used when not all class members file claims.
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