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ARTICLE · 04 JANUARY 2024

FAQ: I Am Affected By A Class Action. How Does Compensation Work?

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Class actions often deal with complex issues, and it can take many years for the action to be resolved. When the action is resolved by way of settlement or monetary judgment in favour of the plaintiff...

CanadaLitigation, Mediation & Arbitration
Bridget Moran
Bridget Moran
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When a class member learns that they are part of a class action, they often wonder what that means in terms of compensation.

Class actions often deal with complex issues, and it can take many years for the action to be resolved. When the action is resolved by way of settlement or monetary judgment in favour of the plaintiff, those funds are usually distributed directly to eligible class members. As with the contested litigation, the distribution of funds can be a complex task that may take multiple years to complete.

The distribution protocol

Typically, class counsel develops a protocol for the distribution of settlement funds to class members. Depending on the type and complexity of the action, experts may be engaged to help design the distribution protocol. The distribution protocol governs who may claim for funds, what the requirements are for a claim, and the relevant deadlines. The distribution protocol must be court-approved.

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