If you’ve ever been eligible to join a class action settlement, you may have wondered, “Why does settlement take so long?” Several factors contribute to the lengthy process. Class action lawsuits involve a large group of plaintiffs who have all been harmed by a common defendant. The legal process becomes prolonged due to the complexities of the cases, as well as the challenges of representing and reaching agreements with a large group of individuals, as seen in cases ranging from product liability to consumer fraud.
At Sparrow, we specialize in class action discovery and guide those navigating the complexities of class action lawsuits. Our platform ensures that class members have the resources they need to get the compensation they deserve, whether they were affected by data privacy breaches, such as in the TaxAct class action lawsuit, or were victims of false advertising, such as in the Fabuloso class action lawsuit.
Using our extensive knowledge of class action settlements, we’ll give you a comprehensive explanation of why class action settlements take so long. We’ll review the various factors that extend the timeline, such as legal complexities, class action size, and the defense’s tactics. We’ll also discuss the different phases of class actions and the time-consuming activities involved in each.
Let’s get started!
What Is a Class Action Lawsuit?
A class action lawsuit is a legal proceeding in which one or more plaintiffs (known as class representatives) bring a case on behalf of a larger group, referred to as a “class”, consisting of individuals with similar claims. Unlike individual lawsuits, class actions consolidate multiple claims into a single case, streamlining the legal process and increasing the likelihood of a resolution that satisfies most, if not all, plaintiffs.
Class actions are often more effective than individual claims because they allow plaintiffs to pool their resources and support one another, making litigation more affordable and manageable for each class member. Larger numbers can also add leverage to negotiations, as they demonstrate the widespread harm caused by the defendant. However, the court’s decision ultimately rests on the merits of the case.
However, when class actions involve large groups of plaintiffs with diverse claims, it can complicate the coordination of the legal process and ultimately cause delays. The diversity in claims can also be exploited by the defendant’s legal team, who may argue that the claims are too disparate to reach a unified settlement, weakening the case.
The Initial Stages of a Class Action Lawsuit
Before settlement negotiations can begin, a class action has to successfully go through several crucial initial phases, including complaint filing, class certification, and class action discovery. These stages set the foundation for the entire case and thus factor into why does settlement take so long.
Each stage involves various factors that can lengthen the duration of the class action lawsuit. The defense will contest the plaintiff’s claims every step of the way.
Filing the Complaint
The class action lawsuit starts with filing the initial complaint, which outlines the plaintiffs’ claims against the defendant. This stage often requires extensive legal research and preparation, identifying the primary defendants, and articulating legal claims. Not all complaints lead to class actions, as the court may dismiss a complaint outright if there is insufficient legal basis or evidence.
This is also when the defense may file a motion to dismiss the class action, prompting strategic responses from the plaintiffs to address any weaknesses in the claim, which can take months to resolve. If the plaintiffs voluntarily withdraw their complaint to be potentially refiled at a future date, as was the case with the Mane and Tail lawsuit due to insufficient evidence, the process could be suspended indefinitely. Thus, the plaintiffs must be as careful as possible when crafting the complaint to avoid potential legal challenges from the defense, which could lead to the court dismissing the complaint.
Certifying the Class
After filing the complaint, the court conducts a legal process to certify the class and decide whether the case can proceed as a class action. They look at the evidence and legal arguments presented by the plaintiffs and determine whether they have enough in common to be considered a valid class.
Specific state or federal laws may influence how the court rules during class certification. However, according to the Federal Rules of Civil Procedure, the plaintiffs must demonstrate specific attributes for their class to be considered valid:
- The Class Is Numerous: It has to be proven to the court that having individual class members pursue their own lawsuits would be impractical. To prove this, the class must exceed at least 21 members or the number deemed appropriate by the court.
- Commonality in Experienced Harm: The class representatives must show that their complaints are similar to those of other class members.
- Plaintiffs Are Adequate Representatives: The lead plaintiff(s) must be competent enough to represent the interests of the entire class. They must be of sound mind and free of conflicts of interest, such as purchasing a product even after they claim that “they would never have purchased” said product if they had known how the manufacturer made it.
- Sufficient Representation: The complaint must sufficiently represent the interests of all class members. The legal team representing the class must also have the experience and resources necessary to advocate fairly and effectively for all members.
In some states, the court will decide on class certification; in others, the plaintiff must submit a motion for it. The defendant may contest this, leading to delays. If the defendant gets the court to deny the class certification, the plaintiffs can restructure the case to better fit the above requirements or pursue separate lawsuits.
Discovery and Gathering Evidence
Class action discovery involves collecting documents, testimonies, expert analyses, and other evidence to build the case. This can involve sifting through massive amounts of data, obtaining internal company communications, reviewing complex statistics, and interviewing witnesses from both sides.
Scientific analysis, in particular, is one of the biggest factors that make class action settlements take so long. Because it must be so thorough, it can extend the timeline to a year or more. Independent laboratories may also have multiple ongoing investigations at a time, potentially delaying the analysis of a class action case.
During the discovery stage, legal maneuvers from both sides become more extensive. These can include tactics such as filing motions to limit discovery, challenging the admissibility of evidence, or requesting protective orders to restrict access to sensitive documents. These tactics, combined with the volume of material, often make discovery one of the longest and most resource-intensive stages of the lawsuit.
Reasons for Delays in Settlements
Even when strong evidence supports a claim, and the defendant is willing to settle, there can still be significant delays before class members receive their payout.
If you’ve ever wondered “why is my settlement taking so long” following a class action, consider the case’s complexity, the number of plaintiffs, and the defense continuing negotiations to secure the most favorable deal for themselves.
Complexity of the Case
Class action lawsuits often involve several complex legal, factual, and scientific issues. The Seresto Tick and Flea Collar lawsuit, for example, was first filed on September 21, 2022, and Seresto only agreed to a settlement in 2024. The lawsuit involved allegations of harmful side effects from chemical ingredients in the collars, which needed extensive scientific studies and expert testimony to establish a causal link.
Such complexities can slow down the negotiation process because both sides must thoroughly analyze and understand the intricate details of the issues before reaching an agreement. Cases involving toxic torts or pharmaceuticals – even those involving pets, such as the Seresto lawsuit – require extensive scientific research, adding years to the timeline.
Number of Plaintiffs Involved
The sheer number of plaintiffs in a class action lawsuit can also complicate the settlement process and is often one of the main reasons why settlement payouts take so long after they’ve already been approved. Each plaintiff can have varying claims and damages, making it difficult to reach a satisfying settlement. Managing communication, negotiations, and payouts for a large group also poses logistical challenges and consumes time.
One notable example of the size of a class delaying settlement agreements is the Pork Price Fixing lawsuit. First filed in 2009, soon after the Great Recession, its Class included every American who had purchased pork products from the beginning of that year until April 2021. The settlement for this case is still being finalized in 2024, and the fact that the defendants include several pork distributors across the country further prolongs settlement negotiations, as each of them is pursuing their own settlement terms that line up more with their own culpability rather than the culpability of pork distributors as a whole.
Prolonged Negotiations and Legal Tactics
Defendants facing class action lawsuits often use delay tactics to prolong the settlement process. These tactics are used to create time for more favorable developments or to prepare for an inevitable settlement. Delays can also exhaust the plaintiffs, making them anxious to reach a settlement and thus more likely to accept lower settlement offers.
These tactics may involve disputing class certification, requesting repeated extensions, or challenging the admissibility of evidence, all of which can significantly delay progress. Additionally, defendants may use complex legal arguments to sow uncertainty, forcing plaintiffs into prolonged legal battles that pressure them into accepting less favorable settlements.
Key Takeaway
The simplest answer to “Why does settlement take so long?” is that going from filing a class action complaint to getting a settlement payout involves complex legal processes that can take years. Collecting evidence during discovery, prolonged negotiations, and the legal maneuvering that both sides execute throughout the lawsuit all contribute to settlement delays.
To set realistic expectations about how long you need to wait before receiving a settlement payout, consider factors such as the size of the class, the case’s complexity, and the defense’s response.For most, receiving a payout from a class action can take over a year. It’s often best to simply look up updates on active class actions from time to time so you can file your claims before the deadline.
Need help tracking class action lawsuits you’re eligible to join? Sparrow can help you stay on top of class action developments and ensure you’re well-prepared to file your claims once settlements are finalized. We are well-versed in the nuances and the risks of joining a class action lawsuit. With our resources, we guarantee that you’re compensated for any harm caused by corporations.