A class action settlement is a legal resolution to a lawsuit brought on behalf of a group or class of individuals who have suffered similar harm or losses due to the actions or inactions of another party. In such cases, one or more representatives (called plaintiffs) bring a claim against the defendant(s), seeking compensation for the damages experienced by all members of the class.
The process typically involves negotiations between the parties involved and their legal counsel to reach an agreement on the terms of settlement. This may include monetary awards, injunctive relief or other forms of compensation that are deemed fair and equitable by both sides. Once a settlement is reached, it must be approved by the court before becoming final and binding on all members of the class.
In summary, a class action settlement is an attempt to resolve a legal dispute in a way that benefits not only the plaintiffs but also other individuals who have been affected by the same issue or situation.