SCAMS BULLETIN Host Jay White is a volunteer attorney who served low income seniors in San Mateo County, California.

July 10, 2019

CLASS ACTION LAWSUITS SCAMS

At one time or another, you may receive a notification of your entitlement to participate in one or more class-action lawsuits. What Is a Class Action Lawsuit?

A Class Action lawsuit allows joining together a large number of people with a common interest who suffered similar harm or have a similar claim. The claims usually result from allegations of injuries, financial loss, frauds (i.e. scams) and other harms.

What to Do if You’re Entitled to a Claim. If you’re notified that your name has been included in a class action, or if you believe you’re entitled to participate even though you haven’t been notified, you generally will have to file a claim.

If after a likely extended time there is a settlement, you should receive what’s called a class notice (or you’ll see it advertised). You then you have to submit a claim to the legal firm handling the lawsuit.

But don’t expect a quick settlement and payout. Most class action lawsuits take years rather than months. Nor should you expect a big windfall. By the time the proceeds of a settlement are divided up among all those affected, your share might be just a few dollars.

How to Guard Against a Lawsuit Scam. You can guard against potential lawsuit scams by following these 5 tips:

*Be wary of email notifications. Most lawsuit notifications arrive in the US Mail. An email notification usually signals a scam.

*Never pay upfront to take part in a claim. Legitimate lawyers get their fees from the settlement, not from plaintiffs. Scammers often try to lure victims by promising thousands of dollars in settlements. That’s a red flag.

*Be extra cautious if you’re asked to provide confidential financial information, like bank account details or Social Security numbers. They’re not required for the lawsuit and settlements are usually paid by check.

*Check the Internet for information about the lawsuit. Review the court’s case records. The notification documents or advertisements should name the court and include a case number (known as a docket number).

 *Watch out for fake settlement checks followed by a request for you to wire part of the payment to a scammer disguised as an attorney.

You should also keep tabs on the case as it progresses through court. 

To learn more about class action lawsuits, visit ClassAction.org.