The US and UK both provide ways for individuals with similar claims to join forces and take on large corporations or entities in pursuit of justice. But, while the basic principle of consolidating claims is shared, approaches differ between the two legal systems, with class actions in the UK commonly known as group litigation.   

In this guide, we’ll explore the main distinctions between class action lawsuits in the US and group litigation in the UK, offering insights for those considering collective legal action on either side of the Atlantic. 

Why collective legal actions exist 

Rather than having thousands or even millions of claimants file separate lawsuits, a collective action allows those with similar claims to unite under one legal case. This approach reduces the burden on courts, saves legal costs, and strengthens the bargaining position of claimants, particularly when challenging large, well-funded organisations. 

While both the US and the UK recognise the importance of collective legal actions, they differ in how they structure and manage these cases. In the US, the primary mechanism is the class action lawsuit, whereas in the UK, it’s known as group litigation.  

Class action in the United States  

What is a class action? 

A class action is a lawsuit where one or more individuals, known as the lead plaintiffs, sue on behalf of a larger group of people with similar claims. The process let’s all claimants (referred to as the class) have their cases heard and resolved together in a single proceeding. 

Certification process 

One of the defining features of US class actions is the certification process. Before the lawsuit can proceed as a class action, the court must certify the class, ensuring: 

• The class is sufficiently large, making individual lawsuits impractical 

• The claims of the lead plaintiffs are representative of the larger group 

• There are common legal or factual issues shared by the class members 

• The lead plaintiffs and their attorneys will adequately represent the interests of the entire class. 

Role of the lead plaintiff 

The lead plaintiff (or plaintiffs) plays a crucial role in US class actions. This individual or small group represents the entire class and takes part in decisions about the lawsuit, such as settlement negotiations. Other class members are generally not required to participate actively in the proceedings, although they are still bound by the outcome unless they opt-out. 

Compensation in class actions 

In US class actions, compensation or damages are typically divided among all members of the class. The settlement or judgment amount is distributed based on the harm suffered by each claimant, but all share in the award. Often, compensation is automatically paid out to eligible class members.  

Lead plaintiffs may sometimes receive a larger portion of the settlement as a thank you for their role in representing the class and managing the legal process. This is meant to acknowledge their added responsibilities and involvement compared to other class members. It’s also not unusual for them to have the worst injuries and the highest damages. How much extra compensation the lead plaintiffs get is down to the discretion of the court.  

Group litigation in the UK (class action UK)  

What is group litigation? 

The UK equivalent of a class action lawsuit is group litigation. This is often managed through a Group Litigation Order (GLO). A GLO lets individuals with similar claims have their cases grouped together and managed collectively. 

Group Litigation Orders (GLOs) 

A GLO is a formal court order.  It is used in large-scale legal disputes where many individuals are affected by the same issue, such as product liability, environmental claims, or data breaches. 

Key aspects of a GLO include: 

• Common issues: The claims involved in a GLO must have a shared issue. For example, all claimants must have been affected by the same data breach.  

• Opt-in system: Claimants must opt-in to participate in the GLO by registering their individual claims with the court (their solicitors usually do this for them). This differs from US class actions, where claimants are automatically included unless they opt out. 

• Test cases: Often, a few test cases are selected to resolve key legal or factual issues. The outcome of these cases will typically apply to all claims within the group. 

• Case management: The court issues a formal order that provides a framework for managing the litigation, including procedures for evidence disclosure, trial schedules, and cost-sharing among the claimants. 

Role of individual claimants 

Unlike class actions, UK group litigation cases do not typically have a lead plaintiff. Instead, each claimant retains their individual status, meaning they must prove how they were affected. As such, participation is more active than in a US class action. 

However, while there is no single representative, a few test cases may be selected to resolve common issues. The outcome of these test cases will apply to everyone within the group and help streamline the resolution of the litigation. 

Compensation in group litigation 

Claimants in UK group litigation may receive different awards depending on their individual circumstances and the strength of their cases. Factors that might be considered when awarding compensation include: 

• Individual circumstances: The extent of the harm or damage suffered by each claimant plays a major role in determining compensation.  

• Strength of the case: Claimants with stronger evidence are more likely to receive higher compensation.  

• Use of test cases: The outcome of these cases may set a precedent for other claims. 

Claimants typically share the legal costs involved in group litigation, which can impact their final compensation. These costs may be deducted from the overall settlement amount before it is distributed. 

Key differences between class action UK and US  

While both the US class action and UK group litigation systems offer collective legal redress, they differ in their structures and processes. Each system has its advantages and disadvantages. If you’re considering joining a group litigation case, it’s important to understand the specific processes your claim will follow, including eligibility requirements, cost-sharing responsibilities, and how compensation is determined. 

* Other, less-common types of legal frameworks exist to handle large-scale disputes in the UK. These include collective proceedings and representative actions, which are opt-out.  

Which system is better for claimants? 

Both systems have their pros and cons, depending on the nature of the case and the preferences of the claimants involved. 

Pros of US class actions:  

• Efficiency: The opt-out system makes it easier to consolidate large groups of claimants. 

• Starting a claim: It’s much easier to start a class action claim in the US than the UK. 

• Less effort for claimants: Class members usually don’t need to participate once they are included in the case. 

• Uniform compensation: A single settlement or judgment can be easier to distribute across claimants. 

Cons of US class actions: 

• Loss of control: Claimants have little say in the case once they are part of the class. 

• Smaller individual payouts: Legal fees and large numbers of claimants can dilute the amount each person receives. 

• Protracted compensation process: Settlement requires approval from the courts, and follow set rules. 

Pros of UK group litigation  

• More control for claimants: Each claimant retains control over their individual case and can influence its outcome (to some extent). 

• Individualised compensation: Claimants receive compensation based on their specific harm, which can lead to more tailored payouts. 

• Straightforward settlement process: Unlike in the US, settlement does not require approval from the courts.  

Cons of UK group litigation 

• Complexity: The opt-in system requires more effort from claimants to register and manage their claims. 

• Higher financial risks: Individual claimants may face higher risks if the group litigation is unsuccessful. To counter this, many class action UK claims are run on a no-win, no-fee basis.  

In conclusion 

Class actions have long been popular in the United States, tackling everything from consumer rights infringements to environmental damage. However, corporate wrongdoing transcends geographical boundaries, and while the UK has historically been less litigious than the US, there is growing interest in collective redress on this side of the pond.  

However, if you’re familiar with US-based courtroom dramas or media portrayals of class actions, be mindful they may give unrealistic expectations of the UK system! Understanding the nuances of UK group litigation will help you navigate the path to justice more effectively. 

How to start a class action UK claim 

At Join the Claim, we connect people who have been wronged with experienced law firms specialising in group actions. We do this by providing quick eligibility checks and an easy signup process. 

Our three-step process:  

1. Find a claim: Check out the latest group action claims on our website 
2. Check your eligibility: Answer a few straightforward questions to find out if you qualify to join a claim. 
3. See your match: If eligible, register your interest, and we’ll connect you with a regulated law firm that will handle the claim.¹.  

It’s that simple, and you can do it all online. 

By simplifying eligibility checks and matching claimants with the right legal representation, we are dedicated to ensuring justice is served.