If you’ve ever been affected by a mass data breach, experienced financial mis-selling, or been a victim of consumer rights violations, you may have come across the term ‘group claim’. But what is a group claim, and how does it work? In this guide, we help first-time claimants understand more about making a group claim, and how this differs from pursuing individual legal action.
What is a group claim?
A group claim allows multiple individuals to file a single lawsuit against a common defendant when they’ve been similarly wronged. For example, lawyers have recently launched a group claim against Johnson & Johnson, alleging that asbestos in its popular talcum powder has resulted in an increased risk of ovarian cancer and mesothelioma.
Group litigation can be used for a variety of cases, including but not limited to:
- Consumer rights violations: For example, if a defective product is sold, all affected consumers could file a group claim against the manufacturer.
- Financial mis-selling: If a financial institution mis-sells products to multiple clients, such as pensions or investments, the mis-sold clients could join forces to claim compensation.
- Data breaches: In the case of a mass data breach, those affected could bring a joint claim against the organisation responsible.
- Equal pay claims: If a company systematically pays certain groups of employees less than others for the same work (e.g. gender pay disparities), affected employees could join together to bring a group claim to seek compensation for lost earnings.
- Emissions claims: If car manufacturers used ‘defeat devices’ to trick emissions tests, affected drivers could join a claim for damages.
Group claims, sometimes known as class actions, level the playing field for ordinary people when standing up against large corporations.
The difference between individual and group claims
Group Claims | Individual Claims | |
Definition | Multiple claimants bring a single, collective action against a defendant for similar issues. | A single claimant brings a case individually against a defendant. |
Legal Framework | Governed by Group Litigation Orders (GLOs) or other collective litigation mechanisms. | Governed by standard civil litigation rules for single-party disputes. |
Costs | Shared among all claimants. Usually run on a no-win, no-fee basis. | All costs are borne by the individual claimant. |
Time to resolution | Typically longer due to the complexity of managing multiple claimants and collective decisions. | Can be resolved more quickly since it only involves one claimant and defendant. |
Control over case | Legal team and lead claimants (or a committee of claimants) make decisions on behalf of the group. | Individual retains full control over case strategy, decisions, and settlements with lawyers. |
Compensation | Compensation is shared among all claimants. | Compensation is awarded directly to the claimant. |
Pressure on defendant | Significant pressure due to the potential large-scale impact. | Lower pressure unless the claimant has a particularly strong case or high-profile representation. |
Eligibility criteria | Claimants must meet the same or similar criteria to join the group. | No group-specific criteria; only need to prove personal harm and legal standing. |
Consistency of outcome | The final outcome applies to all claimants in the group. | The outcome is unique to the individual. |
Access to justice | Facilitates access for those who might not afford to pursue claims individually. | Potentially limited to those who can afford legal representation or handle the complexities alone. |
Visibility and publicity | Often attract media attention and benefit from public support. | Usually low-profile unless involving a high-profile issue or individual. |
Settlement process | Settlements are negotiated on behalf of the group, with terms applying to all. | Settlements are individually negotiated. |
No-win, no-fee group claims
No-win, no-fee agreements are common in group claims, letting you pursue legal action without paying upfront costs. If the case is lost, you pay nothing. If it’s successful, the solicitor usually takes a pre-agreed percentage of your compensation as their fee.
Before joining, make sure you understand the terms – including the success fee percentage and any potential costs. For instance, you could be liable for incurred expenses if you mislead your solicitor or drop out mid-claim. Clarity on these details is crucial before signing up.
The legal basis of a group claim
Specific legal frameworks exist to handle large-scale disputes. In England and Wales, these include:
- Collective Proceedings: Also known as opt-out claims, these include everyone affected by the issue unless they actively withdraw. So, these actions can involve thousands, if not millions, of claimants.
- Representative Actions: These claims are led by one representative and follow an opt-out structure. The representative acts on behalf of the whole group, even those who aren’t aware of the claim.
- Group Litigation Orders (GLOs): People must actively join a GLO, and each claimant needs to prove their own case. Compensation is based on individual circumstances, with test cases often used to set precedents for the rest.
How do group action claims work?
Understanding how a group claim works is essential before deciding whether to join one. Here are some of the most critical steps:
1. Identifying the issue
First, determine if you’ve experienced harm that could be eligible for legal action. Many people don’t realise they have a potential claim until they’re informed about a case. Explore the top UK group actions to see if you could join a claim.
2. Checking eligibility
Eligibility depends on the specifics of each case. For example, if it’s a data breach case, you’d need to show that your personal data was compromised.
At Join the Claim, we’ve created a quick online checker. Once you’ve found a matching group action, answer a few quick questions to see if you qualify. If eligible, register your interest, and we’ll connect you with a trusted law firm to handle the claim on your behalf.
Our process makes joining a group claim straightforward and hassle-free, ensuring you get the support and representation you need.
3. Filing the claim and case management
Group claims are typically handled by specialist law firms experienced in multi-claimant litigation. Once the group is established, they will file the claim in court. This is where the legal framework, such as a Group Litigation Order (GLO), comes into play. The court oversees the management of the case, ensuring that it is handled efficiently given the number of claimants involved.
4. Negotiation and resolution
Group claims can be resolved through settlement negotiations or court judgments. Because of the large number of people involved, settlement negotiations may take longer, as the outcome will need to satisfy the interests of the group as a whole.
Decisions in group claims are typically made by the designated lead claimants or a small group of representatives. But in some cases, the legal team may consult the wider group on key issues, especially when decisions could significantly impact the potential outcome.
5. Distribution of compensation
If the case is successful, or a settlement is reached, compensation is distributed among the claimants. This process can vary depending on the type of claim and the terms of the settlement. In some cases, claimants receive an equal share. In others, compensation is allocated based on the severity of harm suffered by each individual.
Responsibilities of claimants
Once a group is formed, and depending on the legal framework, a lead claimant may be chosen to represent the interests of the entire group. This person acts as the main point of contact with the legal team and is responsible for making key decisions, such as whether to accept a settlement offer on behalf of the group. Alternatively, a select cross-section of claimants may be chosen to make the group’s decisions.
While the lead claimant or select representatives often bear most of the decision-making responsibility, all participants have a role to play. Claimants are generally required to:
- Provide accurate information: Each participant must provide the necessary evidence, documentation, and details relevant to their claim. This ensures the collective claim is robust and accurately represents the extent of harm suffered by the group.
- Stay informed: It’s essential for claimants to stay updated on the progress of the case. Law firms typically send regular updates and may request input on significant issues, such as changes in strategy or settlement offers.
- Adhere to group decisions: Claimants must be prepared to accept collective decisions made on behalf of the group. This means adhering to strategies set by the lead claimant/ legal team, even if those decisions do not align with their individual preferences.
Benefits of joining a group claim
Participating in a group claim offers several advantages over pursuing individual litigation. Here are some of the main benefits:
- Increased bargaining power: When a large group of people come together to take legal action, it creates greater pressure on the defendant to settle.
- Affordable costs: Group actions allow consumers to share the costs of litigation, making it more affordable to pursue a claim. In addition, many law firms run group claims on a no-win, no-fee basis.
- Access to legal expertise: Group actions are typically handled by law firms with expertise in collective litigation, so people benefit from professional legal advice and support.
- Access to justice: Group claims provide access to justice for individuals who might otherwise be unable to pursue their legal rights.
- Streamlined process: Instead of numerous individual cases, a group action consolidates all claims into a single legal process.
- Fair compensation: A group claim doesn’t mean everyone will get the same level of compensation. Often, claimants are grouped according to the level of harm/loss they have suffered. This ensures everyone gets a fair settlement if the case is successful.
- Greater accountability: By facing a united group of claimants, wrongdoing organisations are more likely to be compelled to change their practices and provide remedies for the damage caused.
- Encouragement for others to act: Seeing a group of people stand up for their rights can encourage others who have been similarly affected to come forward, increasing the reach and impact of the claim.
Potential challenges of joining a group claim
While there are many benefits to participating in a group claim, it’s essential to be aware of the potential challenges, including:
- Longer resolution time: Group claims can take a while to resolve due to the complexity of managing a large number of claimants. Negotiations, case management, and court proceedings can be protracted, which may delay compensation.
- Less control over the case’s direction: When you join a group claim, you agree to be represented as part of a collective. This means that decisions are made on behalf of the entire group, and you may have little control over how the case is handled.
- Shared compensation: In most group claims, the compensation awarded is shared among all claimants. This means individual payouts may be lower than expected.
In conclusion
Group claims are an effective legal tool for holding organisations accountable and obtaining justice for widespread harm. They enable individuals to unite, share resources, and pursue compensation that might be unattainable alone.
At Join the Claim, we connect people who have been wronged with experienced law firms that specialise in group actions. We do this by providing quick eligibility checks and an easy signup process.
Our three-step process:
- Find a claim: Check out the latest group action claims on our website
- Check your eligibility: Answer a few straightforward questions to find out if you qualify to join a claim.
- 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.
- While we check eligibility for all claims listed on our website, we cannot guarantee that a law firm will accept you as a client.