Class Action Lawsuits: An Overview for Authors

The Authors Guild has received many questions from authors about class action lawsuits, including who is covered by the classes in particular cases, whether they need to take any specific actions to be covered, and when they can expect to see any payment. This page provides an overview of the key features of class action lawsuits. It is not intended to provide legal advice; for questions about your specific situation, it is always best to consult an attorney.

Guild members who have additional questions can contact our Legal Services team at staff@authorsguild.org, and potential class members can contact the lawyers in a particular case.

What Is a Class Action?

A class action is a special kind of lawsuit permitted under federal law to address harm caused to a large group. Class actions are generally filed by one or a few individuals or organizations on behalf of the larger group of people who have suffered a similar injury or financial harm caused by the action of the persons or entities sued. Class actions are permitted by courts when the plaintiffs are so numerous that it would be impractical to have separate suits initiated by individual plaintiffs. The class members must have the same or similar legal claims, and the facts involved must also be similar. In addition, the named plaintiffs who initiate the lawsuit, along with the attorneys, must be able to adequately represent the interests of all class members.

Who Is Covered by a Class Action?

The complaint in a class action will identify a “class” or “classes” of people and entities that have been harmed by the alleged unlawful conduct and that the action intends to cover.  A final decision on who exactly is covered by a class and whether the class can be certified for a class action will be made by the court..

In a class action suit, in addition to trying the “merits” of the case (i.e., whether the legal violations claimed occurred), the court must also determine whether the class meets all of the criteria necessary for it to “certify” the class. This is done in a separate proceeding, which can come before or after the court tries the case on the merits, at the court’s discretion.

The Class Certification Process

For a lawsuit to proceed as a class action, it must be “certified” by the court. This is a determines whether the case can move forward as a class action or will only cover the named plaintiffs.

For a class to be certified, the case must satisfy four requirements under Federal Rule of Civil Procedure 23(a):

1. Numerosity: The class must be so large that individual joinder of all members is impracticable.
2. Commonality: There must be questions of law or fact common to the class.
3. Typicality: The claims of the representative parties must be typical of the claims of the class.
4. Adequacy: The representative parties must fairly and adequately protect the interests of the class.

Generally, the plaintiff(s) must file a motion asking the court to certify the class and provide evidence that these factors have been met. In many cases, the court will make a ruling on class certification before addressing the merits of the claims in the case. But in some cases, the court may elect to address some or all of the issues on the merits first.

How Do I Join a Class Action Lawsuit?

You don’t have to “join” a class action. All members of the defined class are automatically covered.

That means that if you are part of the affected group of people and meet the court approved definition of the class, you do not need to take action to “join” the lawsuit. As long as you’re a member of the defined class, you are automatically included unless you specifically opt out. More information on the opt-out process is provided below.

This means:

• You don’t need to sign up to be part of the class
• You don’t need to hire your own attorney
• You don’t need to pay any legal fees out of pocket
• You don’t need to participate in the lawsuit

Notification and Opt-Out Rights

If the plaintiffs prevail on their claims and the case is certified as a class action, the court typically will approve a plan to notify potential class members of their rights, including the opt-out process. The notification plan usually will include a deadline to opt out of the class action and the award, in which case you will be allowed to pursue an individual claim against the defendant. If a class member does not opt out by the deadline, they remain in the class and will be bound by the outcome of the case and cannot bring a separate lawsuit based on the same allegations.

Note that some special types of class action cases are opt in, meaning you have to elect to join the case to receive compensation from any resulting settlement or court award. If that is the case, you should receive a notice in the mail informing you of the case and how to join.

How Will I Be Contacted About the Class Action If I am a Class Member?

If you are member of the class, you should receive a notice in the mail if the case settles or there is a final judgement. The notice will contain information about the lawsuit and how you can claim your portion of the settlement and how you can opt out of the case. A plan will normally be developed to locate and notify class members, but if you believe you are a member and do not receive notice when others do, you should reach out to class counsel and let them know. If you do not opt out, you will receive payment or other awarded relief only once all issues are resolved and settled.

If the Class Action is Successfuln, When and How Will I Be Paid?

It is important to remember that this can be—and often is—a lengthy process. Court cases can take several years and having to certify a class can add to the length of the case. Preliminary relief in the form of an injunction to prevent a defendant from doing something or to require them to take action can be obtained earlier in the case pursuant to a preliminary injunction. But no money award will be disbursed until there is a final settlement or a final decision (after any appeal) in the plaintiffs’ favor. In many class actions, it takes years after a suit is filed for class members to receive their share of a monetary award.

Will I Owe the Lawyers Any Money?

Class action lawyers only get paid if they win. They usually collect a percentage of the settlement or receive a fee award separate from the settlement fund. The judge in the case will decide whether the attorneys’ request for fees is reasonable.