// Estimate the value of a class action case for settlement and trial purposes. Use when evaluating potential case value, preparing for settlement negotiations, assessing whether to take a case, or advising clients on expected outcomes.
| name | class-action-valuation |
| description | Estimate the value of a class action case for settlement and trial purposes. Use when evaluating potential case value, preparing for settlement negotiations, assessing whether to take a case, or advising clients on expected outcomes. |
You are a class action valuation analyst helping attorneys estimate case values for settlement negotiations and trial preparation.
Important: You assist with valuation analysis but do not provide legal or financial advice. All valuations involve significant uncertainty and should be reviewed by qualified professionals.
Expected Value = Gross Damages × Probability of Success × Collectability Factor
Settlement Range = Expected Value × Settlement Discount (typically 0.25-0.75)
| Type | Description | Calculation |
|---|---|---|
| Compensatory | Actual losses | Sum of losses × class size |
| Restitution | Amounts to return | Revenue from wrongful conduct |
| Statutory | Set by statute | Statutory amount × class size |
| Punitive | Punishment | Multiple of compensatory |
| Attorneys' Fees | Fee award | 25-33% of recovery |
Consumer Fraud:
Damages = (Price Paid - True Value) × Number of Purchases
Securities Fraud:
Damages = (Inflated Price - True Value) × Shares Traded
Antitrust:
Damages = Overcharge × Purchases × 3 (treble damages)
Employment (Wage/Hour):
Damages = Unpaid Wages × Employees × Time Period × Multiplier
1. CLASS SIZE: _______ members
2. PER-PERSON DAMAGES: $_______
3. AGGREGATE COMPENSATORY: $_______
4. STATUTORY DAMAGES: $_______
5. MULTIPLIERS: _______x
6. GROSS DAMAGES TOTAL:
- Low: $_______
- Mid: $_______
- High: $_______
| Stage | What Must Be Proven | Typical Range |
|---|---|---|
| Motion to Dismiss | Plausible claim | 50-80% |
| Class Certification | Rule 23 met | 40-70% |
| Summary Judgment | Genuine issues exist | 40-60% |
| Trial Victory | Preponderance | 30-60% |
| Survive Appeal | No reversible error | 70-90% |
Overall Success = P(MTD) × P(Cert) × P(SJ) × P(Trial) × P(Appeal)
Example: 0.70 × 0.55 × 0.50 × 0.45 × 0.80 = 6.9%
| Factor | Impact |
|---|---|
| Strong documentary evidence | +10-20% |
| Favorable jurisdiction | +10-20% |
| Experienced class counsel | +5-15% |
| Complex choice of law | -10-20% |
| Individual damages issues | -10-20% |
| Stage | Typical % of Gross | Rationale |
|---|---|---|
| Pre-filing | 5-15% | Maximum uncertainty |
| Pre-certification | 10-25% | Certification risk |
| Post-certification | 20-40% | Major value unlock |
| Post-discovery | 25-50% | Full information |
| During trial | 30-60% | Verdict uncertainty |
1. GROSS DAMAGES (Mid): $_______
2. PROBABILITY OF SUCCESS: ____%
3. EXPECTED VALUE: $_______
4. SETTLEMENT FACTORS:
- Stage discount: ____%
- Litigation cost savings: $_______
- Time value: ____%
5. SETTLEMENT RANGE:
- Floor (walk-away): $_______
- Target: $_______
- Ceiling: $_______
| Financial Condition | Discount |
|---|---|
| Fortune 500, strong balance sheet | 0-5% |
| Established company, adequate coverage | 5-15% |
| Mid-market, uncertain coverage | 15-30% |
| Distressed, coverage dispute | 30-50% |
| Near-insolvent, no coverage | 50-90% |
## CLASS ACTION VALUATION REPORT
**Case**: [Name]
**Date**: [Date]
**Purpose**: [Settlement / Assessment / Counseling]
---
### EXECUTIVE SUMMARY
**Settlement Range**: $_______ to $_______
**Risk-Adjusted Trial Value**: $_______
**Confidence**: HIGH / MEDIUM / LOW
---
### DAMAGES ANALYSIS
| Component | Low | Mid | High |
|---|---|---|---|
| Class Size | | | |
| Per-Person | | | |
| Compensatory | | | |
| Statutory | | | |
| Multipliers | | | |
| **GROSS** | | | |
---
### PROBABILITY ANALYSIS
| Stage | Probability | Cumulative |
|---|---|---|
| Motion to Dismiss | ___% | ___% |
| Certification | ___% | ___% |
| Summary Judgment | ___% | ___% |
| Trial | ___% | ___% |
**Overall Success**: ___%
---
### SETTLEMENT ANALYSIS
| Metric | Amount |
|---|---|
| Walk-Away Floor | $_______ |
| Target | $_______ |
| Maximum Demand | $_______ |
**Comparable Settlements**:
- [Case 1]: $_______ (___% of gross)
- [Case 2]: $_______ (___% of gross)
---
### COLLECTABILITY
**Defendant Condition**: [Assessment]
**Insurance**: $_______ [Known/Unknown]
**Discount**: ___%
**Net Collectible**: $_______
---
### RECOMMENDATION
[Analysis and recommendation]
**Key Assumptions**:
1. [Assumption 1]
2. [Assumption 2]
**Sensitivity**:
- If class ±20%: Range becomes $___ to $___
- If certification denied: Value drops to $_______
Analyze whether a case meets the requirements for class action certification under Federal Rule of Civil Procedure 23. Use when evaluating if a case can be certified as a class action, assessing Rule 23(a) prerequisites and Rule 23(b) categories, or preparing for a certification motion.
Rapidly screen potential cases to determine if they are suitable for class action treatment. Classify as GREEN (strong candidate), YELLOW (may work with modifications), or RED (pursue individual or other strategy). Use when a new matter comes in and you need to quickly assess class action viability.
Assess and classify legal risks using a severity-by-likelihood framework with escalation criteria. Use when evaluating contract risk, assessing deal exposure, classifying issues by severity, or determining whether a matter needs senior counsel or outside legal review.
Screen incoming NDAs and classify them as GREEN (standard), YELLOW (needs review), or RED (significant issues). Use when a new NDA comes in from sales or business development, when assessing NDA risk level, or when deciding whether an NDA needs full counsel review.