Mass tort or class action? Why the difference matters
Not every lawsuit with thousands of plaintiffs is a class action. It's important to know the difference.
Johnson & Johnson’s proposed talc settlement involves tens of thousands of people, but it is not a conventional class-action settlement.
In a class action, one or more plaintiffs represent a larger group whose claims are similar. The court decides whether the group qualifies as a class, and a settlement generally establishes a common fund or payment formula for everyone covered.
A mass tort works differently. The cases may be coordinated before one judge to reduce duplication, but each injured person keeps an individual claim. Medical history, product use, diagnosis, age and other facts can affect whether the claim qualifies and how much it may be worth.
Why payments may vary
The proposed J&J agreement reportedly covers about 76,000 existing ovarian cancer claims. Dividing a $5.5 billion settlement equally would produce roughly $72,000 per claim, but that is not how mass-tort settlements usually work.
Payments may depend on:
- The type and stage of cancer
- The claimant’s age and medical history
- Evidence of talc-product use
- The length and frequency of exposure
- Whether the claimant is living or deceased
- Previous settlements or compensation
- Legal fees and case expenses
Some claimants could receive considerably more than the mathematical average, while others could receive less or be found ineligible.
What coordinated litigation means
Many of the federal talc lawsuits have been grouped in multidistrict litigation, or MDL.
An MDL is designed to make large numbers of similar lawsuits more efficient. One federal judge oversees common issues such as evidence, expert testimony and discovery. The cases do not automatically become one class action, and individual clMDLaims may return to their original courts if they are not settled or dismissed.
Why lawyers recommend settlement grids
Mass-tort agreements often use a points system or settlement grid. Claimants receive points based on factors such as diagnosis, age and documented exposure. Those points are then converted into payments.
The process can speed up compensation, but it may also limit a claimant’s ability to pursue a larger jury verdict.
What claimants should ask
Before accepting a settlement, claimants should ask their attorneys:
- How was my claim valued?
- What deductions will be taken?
- Are legal fees calculated before or after expenses?
- When is payment expected?
- What rights do I give up by accepting?
- Can I reject the offer and continue litigating?
- What happens if too few claimants approve the agreement?
Claimants should obtain the answers in writing and should not rely on unsolicited calls, online advertisements or promises of guaranteed payments.
