The Employee Retirement Income Security Act provides protections for people enrolled in voluntary health and retirement plans. When these plans are not administered properly, lawsuits may ensue.
ERISA lawsuits are not always class actions, but because mismanaged plans often affect an entire group of employees, it is not uncommon. Should you join an ERISA class action or pursue your case as an individual?
Benefits of a class-action lawsuit
Consider the potential benefits before deciding whether to join a class action suit:
- The primary advantage of a class-action lawsuit is that a large group of plaintiffs often has more resources than the individual members of the class have.
- Class action lawsuits usually cost little to nothing for the plaintiffs to pursue. This makes it easier for some claimants to hire a highly qualified attorney to argue their case.
- Class action lawsuits tend to succeed more often than individual lawsuits. When a large number of people are alleging the same violations, the judge or jury may be more likely to believe the allegations are true.
Disadvantages of class action lawsuits
Class action suits also come with some disadvantages. First, individual members of the class often have little input when it comes to settlement agreements. Class action suits can also take a long time to conclude. Finally, if you lose a class action lawsuit, you usually can not pursue your own claim for the same violations.
ERISA class action suits can be an effective way for a group of employees to fight back against an entity that has harmed them. However, you should consider both the benefits and the disadvantages before choosing how to pursue your case.
