What is a class action lawsuit? A single lawsuit filed by one or more people on behalf of a much larger group (the "class") who were harmed in the same way by the same company. Instead of thousands of separate lawsuits, one case represents everyone, and any settlement money is distributed among class members who file valid claims.
You don't sue. You file a claim form with the settlement administrator before the deadline. The 60 terms below cover every step of that process.
Whether you have received a settlement notice in the mail, are trying to file a claim, or want to understand how class actions work, this glossary covers the most important terms — organized by topic. Tap any term for a full definition with real-world examples.
Class action basics
One lawsuit filed on behalf of many. Class Member
A person in the affected group. Class Period
Time window defining eligibility. Lead Plaintiff
The class's representative. Named Plaintiff
Listed by name on the complaint. Subclass
A distinct group within the class. Voluntary Class Action
Members must opt in. Mandatory Class Action
All members bound, no opt-out. Class Action Fairness Act
CAFA: federal-court jurisdiction rules. Class Action Waiver
Contract clause barring class suits.
Filing a claim
The document you submit to get paid. Claim Filing Deadline
The last day to submit. Claim Administrator
The firm that processes your claim. Claim Form Validation
How administrators verify claims. Claim Rejection
Why claims get denied. Claim Uplift
Bonuses for valid claims. Proof of Purchase
Receipts, statements, confirmations. Purchase Attestation
Signed statement of purchase. Attestation
Sworn statement of facts. Notice of Class Action
The letter or email you receive. Exclusion Deadline
Last day to opt out. Opt Out
Exclude yourself to sue separately.
Settlement structure
Manages the settlement logistics. Settlement Agreement
The negotiated terms of resolution. Settlement Class
Class certified solely for settlement. Settlement Fund
The total amount available. Escrow Account
Where settlement money is held. Plan of Allocation
How money is split among claimants. Pro Rata Distribution
Proportional payment to claimants. Initial Distribution
First round of payouts. Final Distribution
Last round, including unclaimed funds. Residual Funds
Money left over after distribution. Cy Pres
Unclaimed funds go to charity. Cy Pres Distribution
How leftover money is awarded. Reversionary Clause
Unclaimed money returns to defendant. Damages Cap
Statutory max recoverable. Damages
Money awarded for harm.
Court process
Judge's order recognizing the class. Class Certification
Court's approval to proceed as a class. Preliminary Approval
First sign-off on the settlement. Final Approval
Judge's final go-ahead. Fairness Hearing
Court reviews the settlement terms. Objection to Settlement
Formal complaint about terms. Release of Claims
Giving up the right to sue again. Stipulation
Agreement between parties. Special Master
Court-appointed neutral. Docket
The court's case schedule + filings. Rule 23
The federal rule for class actions. Multidistrict Litigation (MDL)
Many related cases combined. Tolling
Pausing a deadline clock. Statute of Limitations
Time limit to sue.
Certification standards
Before a court will certify a class action, the plaintiffs must satisfy these Rule 23 requirements:
Class is too big for individual suits. Commonality
Shared legal questions across members. Typicality
Lead plaintiff's claims represent class. Adequacy
Counsel can fairly protect the class. Superiority Requirement
Class action is the best vehicle. Manageability
Case can be handled efficiently.
Money & fees
Lawyers' cut of the settlement. Common Fund Doctrine
Fees come from the common recovery. Incentive Award
Bonus for lead plaintiffs.
Frequently Asked Questions
What's the difference between a class action and a settlement?
A class action is the lawsuit. A settlement is the resolution — an agreement (usually for money) reached between the defendant and the class, approved by a judge, that avoids a trial. You don't get paid from a class action; you get paid from the settlement that follows it.
How do I know if I'm a class member?
You're a class member if you fit the definition listed in the settlement notice — usually a description like "anyone who purchased Brand X between 2018 and 2023." You become a member automatically unless you formally opt out.
Do I need a lawyer to file a class action claim?
No. Class action settlements are deliberately designed so any class member can file a claim directly with the settlement administrator. The lawyers represent the class as a whole; you just submit the claim form.
What is cy pres?
Cy pres ("as near as possible") directs leftover settlement money to charitable organizations whose work approximates the interests of the class, when funds can't be feasibly distributed to all members. It prevents the defendant from getting unclaimed money back.
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