How Multidistrict Litigation (MDL) Differs from California State Class Actions

When many people are harmed by a defective product, a dangerous drug, or corporate misconduct, the legal system uses certain tools to manage the large number of claims. Two common options are multidistrict litigation (MDL) and class action lawsuits.

Both options bring similar cases together, but they operate in different ways. These differences are important if you’re considering legal action. Knowing the similarities and the differences is critical in determining which option best suits your situation and what it means for your claim.

What is multidistrict litigation?

Multidistrict litigation is a process used only in federal courts. When many people file separate lawsuits in different federal courts involving the same facts and common questions of fact, the Judicial Panel on Multidistrict Litigation (JPML), which is made up of seven federal judges designated by the Chief Justice, can move those cases to one federal court for combined pretrial proceedings.

The MDL process was created by the Multidistrict Litigation Act of 1968 and is found at 28 U.S.C. § 1407. The assigned judge manages discovery, motions, and other pretrial steps for all the cases. If the cases aren’t settled during pretrial, they’re typically remanded to their original courts for trial, but most cases settle before that happens.

What is a class action lawsuit?

A class action is a single lawsuit filed by one or more representative plaintiffs on behalf of a large group (referred to as the “class”) who suffered similar harm from the same defendant. In federal court, class actions must meet the certification requirements of Federal Rule of Civil Procedure 23, which requires:

• Numerosity,
• Commonality,
• Typicality, and
• Adequacy of representation.

California state class actions follow a similar framework under California Code of Civil Procedure § 382, although the specific standards for certification differ in some respects from the federal rules. Unlike MDLs, class actions can be filed in either state or federal court.

After a class is certified, the result of the lawsuit applies to everyone in the class. In many class actions, people can choose to opt out and file their own claims, but those who stay in the class are bound by the settlement or verdict. This is why the certification step is one of the most important and often most debated parts of a class action.

Key differences between MDL and class actions

Court system

MDLs exist only in federal court. Class actions can be filed in California state court or federal court, depending on the nature of the claims and the parties involved.

Status of individual plaintiffs

In an MDL, each person maintains their own separate lawsuit. These cases are combined for pretrial steps, but each claim remains individual. In a class action, the lead plaintiff represents everyone, and most people are bound by the result, whether it’s a settlement or a verdict, unless they choose to opt out.

Individual compensation

This is one of the biggest practical differences. In an MDL, each person’s damages are looked at separately, based on their own injuries, medical history, and losses. In many class actions, the settlement or judgment is usually split among all class members, which often means smaller payments for each person.

For cases with serious physical injuries that differ from person to person, MDLs are often the better choice. A class action lawyer can help you decide which option could give you the best result.

Certification requirements

Class actions need court approval before they can move forward. The court checks if the group meets the legal requirements, and defendants often challenge the certification of the class. MDLs don’t need class certification. The JPML simply evaluates whether the cases have common facts and if combining the cases would increase efficiency.

Trial procedures

If an MDL doesn’t settle, individual cases are remanded to their original courts for trial. The MDL judge may also conduct “bellwether” trials, which are selected test cases that help both sides assess the strength of the claims and inform settlement negotiations. In a class action, the case is tried once on behalf of the entire class, and the result binds all members.

Common examples of MDL and class action cases

MDLs are most often used in mass tort cases that involve personal injuries with different circumstances for each person. Pharmaceutical and medical device cases, like lawsuits about defective hip implants, dangerous medications, or herbicide exposure, often use MDLs because each person’s injuries and damages are unique. Recent well-known MDLs include:

• Cases about Roundup herbicide;
• Social media addiction lawsuits; and
• Various defective medical or safety device claims.

Class actions are more common when people have suffered similar financial losses, such as in cases of consumer fraud, data breaches, or securities violations, where everyone’s situation is mostly the same. In California, class actions have been used for cases involving:

• Deceptive business practices;
• Wage and hour violations; and
• Environmental harm affecting entire communities.

Timelines and resolutions

Both MDLs and class actions can take years to resolve, but the processes differ.

In an MDL, pretrial proceedings may last several years, during which the transferee judge may schedule bellwether trials to test the strength of representative claims. These trial results often help settle the cases. Studies have found that less than three percent of MDL cases return to individual trials. Most are settled before that.

Class actions have a different timeline, and just getting certified can take months or years. If the class is certified and the case doesn’t settle, a single trial decides the outcome for everyone in the class.

How individual participation differs

On the other hand, in an MDL, each plaintiff works with their own attorney and provides their own evidence of injury and damages, and each plaintiff retains the ability to accept or reject any settlement offer independently. By contrast, in a class action, the lead plaintiff and class counsel make most decisions on behalf of the entire class. Individual class members typically have limited involvement beyond receiving notice of the action and any eventual settlement.

Plaintiffs who want greater control over their claims often prefer the MDL structure, while those who prefer a more hands-off approach may find class actions more convenient.

Why the distinction matters for your case

Understanding whether your claim is better suited to an MDL or a class action can affect your level of participation, the amount of compensation you receive, and how long the process takes.

In California, where both federal and state courts handle complex multi-plaintiff litigation, understanding these distinctions is especially important because the choice of forum and procedural vehicle can significantly affect the trajectory and outcome of a case.

Working with experienced class action lawyers who handle both types of complex litigation ensures that you’re guided toward the approach that best serves your interests. Contact McNicholas & McNicholas, LLP today to discuss your potential claim and understand how these legal tools may apply.