How to Determine If a Class Action Settlement Notice Is Fraud

Getting free money is on everyone’s wish list, so it’s a big day when you wake up and hear an email or letter in the mail announcing that you can file a class action lawsuit against a corporation or organization. Getting paid for harm you don’t even remember suffering in exchange for filling out a form is a pretty good deal and a pleasant surprise.

Except that, like everything else in this world, sometimes a notice of class action settlement is not actually a notice of class action settlement. Instead, it’s a scam. And effective because you usually don’t know about class action lawsuits until you receive this notice, and they usually come from random law firms you’ve never heard of. So how do you know if you are about to receive a small amount of money or if your personal information has been stolen?

One reason it is difficult to determine at first glance whether a notice of settlement is real is the nature of class actions. Unless you’re one of the people filing a lawsuit, you likely don’t even realize it’s happening. A class action is organized by the courts when harm could potentially occur to a large number of people collectively. Instead of working on hundreds or thousands (or hundreds of thousands) of individual lawsuits, the court allows attorneys to gather everyone into a “class” that files class actions. This is usually accompanied by a requirement that attempts be made to identify everyone who could potentially be affected (like you!) in order to fairly distribute any amounts received as a result of a settlement or judgment in the case.

Here’s how you can become a recipient of compensation from, say, Oracle America, Inc., even if you never knowingly dealt with Oracle. The “conscious” part is important – if the lawyers working on the case find your name somewhere on the paperwork, they will send you a notice so you can file a claim and register as a course participant. This is usually not a lot of money— the average payout in a class action lawsuit is only $32 . But filling out the online form takes a few minutes, so $32 isn’t bad.

Unless it’s a scam.

How to Determine a Fraud Class Action Lawsuit Settlement

If you receive a class action settlement notice, especially if it is an email, there are a few things that may tell you it is a scam:

• It’s vague. Most class action settlement notices are pretty dull and boring—they are written by lawyers, after all. These notices usually ask to give you all the information about the lawsuit, the parties involved, the proposed settlement, and how you can file your claim. If it instead uses language about a “lawsuit” or class action in which you are a part, but does not disclose the details, it is likely a scam.

• No search results. Try searching for the people and organizations mentioned. If you cannot find the law firm’s website or the firm’s website does not list the attorneys who supposedly sent you this notice, this is a big red flag.

• Huge payout. Typically, settlement notices do not mention specific amounts for plaintiffs because, although they know the total settlement amount (and the amount reserved for attorneys’ fees), they cannot know how much each plaintiff will receive until they know how many plaintiffs there are. . So if the notification mentions a large number, it’s probably meant to hook your greed and make you rush to give up all your personal information (or worse).

• Time pressure. All settlement notices include a deadline for filing a claim, so simply noting that you have a limited time to file is not a red flag. A red flag is any pressure to act quickly. The notice does not have to tell you if you are involved in the claim—it just gives you information, not encourages you to get that check.

• Strange links. Finally, a universal sign of scams are links that do not lead directly to recognizable URLs, such as the main law firm site or a special site created for a class action lawsuit. Although you should double check any URL you visit and never click on a link in an email or text message (go directly to the law firm’s website to find links there instead) if the notice contains any shortened URLs -addresses or inappropriate websites, don’t be shy: and do your research.

Review of any class action claim settlement

Do not be pressured or tricked into filing a class action settlement. Looking for signs of fraud is a good practice, but it’s also worth taking the time to verify the details yourself. A few additional steps to take:

• Do a search on the class action lawsuit itself to see if it’s real, or visit sites like ClassAction.org or Consumer-Action.org for more information. If you can’t find the costume or it looks like it was completed years ago, it’s a scam.

• Search all addresses and emails in a notification. If they don’t match what is stated in the notice, be very suspicious. As one person discovered, the address listed in a scam settlement email he received was actually for the office supply store Staples .

Once you’ve done all this diligence, you can go ahead and request a settlement check—let’s hope all that effort cost an average of $32.

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