Buzz
The idea of free money is appealing to almost everyone, so when you receive an email or letter notifying you that you’re eligible to file a claim in a class action lawsuit against a company or organization, it feels like a win. Being compensated for an inconvenience you don’t even recall enduring in exchange for filling out a form seems like a sweet deal—and a pleasant surprise.
However, just like anything else, sometimes a class action settlement notice isn’t actually legitimate. Instead, it could be a scam. These frauds are particularly effective since you're often unaware of the class action until the notice arrives, and they frequently come from unfamiliar law firms. So, how do you distinguish between a legitimate settlement offering a small payout and a potential identity theft scheme?
One challenge in spotting a fake settlement notice is the very nature of class action lawsuits. Unless you're directly involved in the lawsuit, you likely wouldn't even know it’s taking place. A class action is initiated by the courts when a large group of individuals may have been affected by similar harm. Instead of pursuing numerous individual lawsuits, the court permits attorneys to consolidate everyone into a “class” that sues collectively. This process typically involves efforts to identify everyone potentially impacted (including you!) to ensure any settlement or award is fairly distributed among all affected parties.
You might find yourself eligible for a settlement from a company like Oracle America, Inc., even if you've never directly interacted with them. The key is whether the lawyers handling the case find your name in the paperwork—they’ll send you a notification so you can file a claim and join the class. Though it typically isn't much, with the average payout being only $32, filling out a simple online form means it’s still a quick way to earn some money.
Of course, there’s the possibility it’s a scam.
How to Spot Fake Class Action Settlement Offers
Receiving a class action settlement notice, particularly via email? Be on the lookout for these signs that it could be a scam:
Vague details. Authentic settlement notices are usually detailed and factual, written in legal language. These documents typically explain the lawsuit, the parties involved, the settlement terms, and how to file your claim. If the notice lacks specifics and uses general terms like 'a lawsuit' or 'class action,' it might be a scam.
No online presence. Search for the people or organizations mentioned. If you can't find a legitimate website for the law firm or if the site doesn’t list the attorneys who supposedly sent you the notice, it’s a major warning sign.
Exaggerated payout. Real settlement notices rarely mention specific payout amounts, as they don't know how much each individual claimant will receive until the total number of claimants is determined. If the notice promises a large sum, it's likely designed to trigger your greed and lure you into providing personal information—or worse.
Urgency. All settlement notices have deadlines, but if the notice pressures you to act quickly, that's a problem. Genuine settlement notices provide information without urging you to rush into making a claim.
Suspicious links. One sure sign of a scam is links that don't lead to trustworthy URLs, such as a reputable law firm’s official website or a special site for the class action. Avoid clicking links in emails or texts; instead, go directly to the law firm’s website to verify any links you’re given. Be cautious of shortened URLs or unfamiliar websites.
Make sure to verify any class action settlement claim before proceeding.
Don’t let yourself be rushed or deceived into submitting a claim for a class action settlement. While recognizing signs of a scam is essential, it’s also crucial to take the time to independently verify the details. Here are a few extra steps to help you stay safe:
Check the class action itself to ensure it’s legitimate. You can also visit websites like ClassAction.org or Consumer-Action.org for more information. If you can’t locate the lawsuit or it appears to have ended years ago, it’s probably a scam.
Verify the addresses and email addresses listed in the notice. If they don’t match the details in the notice, be highly suspicious. One person discovered that the address in a fraudulent settlement email pointed to a Staples office supply store.
Once you've done all this research, you can confidently claim your settlement check—hopefully, all this effort results in that average payout of $32.
