What Is the Difference Between a Class Action Lawsuit and an MDL?

When a product or medication harms a large group of people, the legal system offers ways to manage the resulting claims. 

A class action lawsuit is a single case where one or more plaintiffs represent a large group with identical claims, resulting in a uniform outcome for all. Multidistrict Litigation (MDL) is a lesser-known but increasingly common procedure that consolidates many individual lawsuits with shared factual issues before one judge for pretrial proceedings. In an MDL, each plaintiff’s case remains distinct and is valued on its own merits.

The key difference for you is control and compensation: in a class action, you are a passive member of a group; in an MDL, your case is your own.

If you have a question about an injury caused by a defective product or medication, call the Russo Firm for clarity on your legal options: (954) 767-0676.

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3 Key Takeaways: Class Actions vs. MDLs

1. Your case has individual value in an MDL. Your compensation is based on your specific damages, unlike a class action where payouts are uniform and small.
2. Class actions automatically include you for identical, minor claims. They are designed for situations like illegal bank fees, requiring you to actively “opt-out” if you want to file a separate lawsuit.
3. MDLs are the standard for complex personal injury cases. Most large-scale lawsuits involving defective medical devices or drugs are handled as MDLs to provide both efficiency and fair, individualized outcomes.

Class Action Lawsuits: One Lawsuit, One Voice for the Group

What Is a Class Action Lawsuit?

A class action is a single lawsuit filed by a “lead plaintiff” on behalf of a large group of individuals who have suffered the same type of harm. Think of it like this: If a bank illegally charges 10,000 customers the exact same $50 fee, it wouldn’t make sense for each person to file a separate lawsuit. Instead, one person sues on behalf of everyone who was wrongfully charged.

The legal basis for this is Federal Rule of Civil Procedure 23, which outlines the requirements for a case to be certified as a class action. For a case to proceed, a judge must agree that there are common questions of law or fact and that the lead plaintiff will adequately represent the entire group.

How Do You Become Part of a Class Action?

In most cases, if you fit the class description, you are automatically included. You don’t have to do anything to join. You will typically receive a notice in the mail or see a public announcement explaining the lawsuit. This notice will also give you the option to “opt-out” if you wish to file your own separate lawsuit. If you do nothing, you are bound by the outcome—whether it’s a settlement or a verdict.

What Kinds of Cases Are Usually Class Actions?

Class actions are most effective when the damages for each person are identical or nearly identical and are typically small. Common examples include:

• Consumer Fraud: Cases involving misleading advertising or illegal fees charged to a large customer base.
• Data Breaches: When a company fails to protect the personal information of its customers, leading to similar damages for everyone affected.
• Defective Products: This usually involves minor property damage where the financial loss is the same for everyone, such as a faulty appliance part that costs the same amount to replace.

What Does a Class Action Mean for You?

There are clear benefits and drawbacks to being part of a class action. It provides a way to seek justice for a wrong that might be too small to justify an individual lawsuit, and it requires very little effort from you as a class member. 

However, you give up control over your case. The final settlement or verdict applies to you, even if you feel it doesn’t adequately cover your losses. Payouts are uniform and typically small, as the total amount is divided among all class members who file a claim.

Multidistrict Litigation (MDL): Your Case, Your Voice, Consolidated for Efficiency

What Is Multidistrict Litigation (MDL)?

An MDL is not one lawsuit; it is a legal procedure that consolidates hundreds or thousands of individual lawsuits into one federal court for pretrial activities. 

Imagine a faulty hip implant that has injured thousands of patients. Each patient’s injury is different, causing varied outcomes such as needing revision surgery or suffering from chronic pain and infection. An MDL brings all these individual cases to one judge to streamline the process of gathering evidence about the defective implant itself.

This process is governed by a federal law, 28 U.S.C. § 1407, and managed by the Judicial Panel on Multidistrict Litigation (JPML), a group of federal judges who decide whether and where to centralize cases.

How Does an MDL Work?

The MDL process unfolds in several key stages:

• Consolidation: Your lawyer files an individual lawsuit in your home state. The JPML then transfers it to the designated MDL court for coordinated pretrial proceedings.
• Pretrial Proceedings: The MDL judge oversees discovery—the process of gathering documents and testimony from the defendant. This prevents the company from having to produce the same evidence thousands of times and ensures consistent rulings on evidence.
• Bellwether Trials: The judge and attorneys select a few representative cases to go to trial. These “bellwether trials” help both sides see how juries might react to the evidence and arguments. The outcomes of these test cases provide a framework for negotiating a larger, global settlement.
• Resolution: Your case is resolved in one of two ways. It might become part of a large settlement program, where your compensation is based on the severity of your specific injuries. If no settlement is reached, your case is sent back to your original court for a standalone trial.

What Kinds of Cases Are Usually MDLs?

MDLs are the standard for cases where a single product or event causes unique and significant personal injuries to many people. This includes:

• Dangerous Drugs: Pharmaceuticals with harmful side effects that affect patients differently.
• Defective Medical Devices: Faulty implants, surgical mesh, or other devices causing varied and severe complications.
• Toxic Substances: Widespread exposure to harmful chemicals, such as in the Roundup herbicide or asbestos litigations.

What Does an MDL Mean for You?

The primary advantage of an MDL is that your lawsuit remains your own. You retain your own attorney, and your potential compensation is directly tied to your personal damages. The process is also more efficient and less costly than a standalone lawsuit. 

While the outcome of bellwether trials may influence your settlement negotiation, it does not guarantee a specific result for your case.

The Rise of MDLs: Why the Legal System Is Shifting

If you follow the news, you’ve probably heard of massive legal cases against companies like Johnson & Johnson (talc), Bayer (Roundup), and 3M (earplugs). These were all MDLs, not class actions. There is a clear trend in the legal system. Federal courts have tightened the requirements for class certification, making it more difficult for groups with varied injuries to file as a single class. As a result, the MDL has become the primary tool for handling mass torts.

Statistics show this shift: today, a significant majority of all pending federal civil cases are managed as MDLs. This shift is largely beneficial for seriously injured plaintiffs. By treating each claim individually within a consolidated framework, the MDL system allows for both efficiency and fairness. It prevents a person who suffered life-altering injuries from receiving the same small payout as someone whose damages were minor.

This is reflected in the outcomes: average MDL settlements for individuals are frequently substantially higher than what is typically recovered in a consumer class action. 

Frequently Asked Questions About Class Actions and MDLs

Do I have to pay a lawyer upfront to join an MDL?

No. At the Russo Firm, we handle these cases on a contingency fee basis. This means we only get paid if we successfully recover compensation for you. There are no out-of-pocket costs for you to worry about.

How long does an MDL case take?

Due to their complexity, MDLs are not quick. The pretrial consolidation phase takes several years, followed by settlement negotiations or the return of your case for trial. We will keep you informed at every stage.

Can a Florida resident participate in an MDL located in another state?

Yes. Your case is typically filed in your local federal court and then transferred to the MDL court, wherever it may be. Our firm represents you regardless of where the MDL is centralized.

What if I receive a class action notice in the mail?

Do not ignore it. It contains important deadlines, including the deadline to opt-out. Before you do anything, discuss the notice with an attorney to understand if remaining in the class or pursuing your own claim is in your best interest.

What is a global settlement in an MDL?

This is when the defendant company agrees to set aside a large sum of money to resolve all or most of the cases in the MDL. The funds are then allocated to individual plaintiffs based on a negotiated matrix that accounts for the severity of their injuries.

What is the difference between a mass tort and an MDL?

An MDL is a procedural mechanism that manages mass torts. A mass tort is a type of personal injury lawsuit where many individuals suffer harm from a single product, event, or action. Consult a personal injury lawyer to learn your options.

MDLs consolidate these individual mass tort cases for pretrial proceedings, making the legal process more efficient.

Your Case Is Unique. Your Legal Strategy Should Be, Too.

You may be one of many people harmed, but your losses, your pain, and your story are entirely your own. The primary difference between a Class Action Lawsuit and an MDL is that the MDL process respects that individuality.

Don’t assume your only option is to be a nameless face in a crowd. The law provides a path for your individual case to be heard and valued, even in a mass litigation setting.

The first step is understanding your rights and how these complex legal structures apply to you. Let us provide the clarity you need to move forward.

To discuss your situation and get a clear explanation of your options, call the Russo Firm at (954) 767-0676 today.

Schedule a Free Initial Consultation Today!