Pay for a Class Action representative

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Mushroomlane

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When a person volunteers to be a class representative are they reimbursed in any way for their time, effort, and lost income(if self employed time spent on class action is time away from making money). If they are, how? Awarded slightly more then others in the class? The attorneys share some of the percentage they get for winning the case? They are paid for actual time spent on the case?? Or some other way!

Thank you
 
Mushroomlane said:
When a person volunteers to be a class representative are they reimbursed in any way for their time, effort, and lost income(if self employed time spent on class action is time away from making money). If they are, how? Awarded slightly more then others in the class? The attorneys share some of the percentage they get for winning the case? They are paid for actual time spent on the case?? Or some other way!

My understanding is that the class representatives can be provided with some compensation for their services but don't expect a windfall at all. There should not be a disproportionate award to an injured party just because they put forward the initial suit. All awards and class action settlement must be approved by the court as per Fed. R. Civ. Proc. Rule 23(e).

There are other advantages as well, including having input as to how the case is handled, making sure the class is certified (a big benefit for you as well) and also may be more involved with settlement. What have your attorneys told you?
 
Yes, you are compensated at the end of the case under a "Loadstar" theory, whereby since your time and effort contributed to the presumably great result that was achieved, your claim under the class action is multiplied. The multiplier will vary as to the type of case, the size of the claim, and the efforts you made as well as the results obtained. Don't look for a big windfall, but I have seen multipliers of 2-9, in that range.
 
I am getting involved in a class action law suit (not in securities and exchange) but for an internet website which has duped me out of money. The damage is minimal to me (only about $60), but the damage to all consumers will easily go to the 10s of millions.
The attorney didn't promise me any set compensation, but did remark it is typical for a class action representative to get $10,000-$15,000, and I could probably expect compensation in that range if the lawsuit is successful.

Is this correct, in your opinion?
 
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