MDL vs. Class Action: Key Differences Explained

Understanding these differences matters. The type of proceeding your case joins can affect how much control you have over your claim, how your compensation is calculated, and even whether you need your own attorney. This guide breaks down the key distinctions so you can better understand your legal options.

What is Multidistrict Litigation (MDL)?

Multidistrict litigation is a federal court procedure that consolidates similar civil cases filed in different federal districts before a single judge for pretrial proceedings. Congress created MDL in 1968 through 28 U.S.C. § 1407, responding to the challenges of managing over 1,800 separate antitrust cases against electrical equipment manufacturers.

The Judicial Panel on Multidistrict Litigation (JPML), which consists of seven federal judges appointed by the Chief Justice of the United States, decides whether to consolidate cases into an MDL. The Panel transfers cases when they involve common questions of fact and when consolidation will promote convenience and efficiency.

MDL cases currently represent a substantial portion of the federal civil caseload. As of December 2025, there are 155 active MDLs with approximately 198,000 pending actions in federal courts across the country.

What is a Class Action?

A class action is a lawsuit where one or more "representative plaintiffs" sue on behalf of a larger group (the "class") who share common legal claims. Class actions are governed by Rule 23 of the Federal Rules of Civil Procedure in federal court, though state courts have their own class action rules.

To certify a class action, the court must find that the lawsuit meets four requirements under Rule 23(a):

If these requirements are met, the court must also find that the class action fits into one of three categories under Rule 23(b), most commonly that common questions "predominate" over individual issues and that a class action is "superior" to other methods of resolving the dispute.

How MDL and Class Actions Differ

The differences between MDL and class action proceedings affect nearly every aspect of the litigation, from how cases are filed to how plaintiffs receive compensation.

Court Jurisdiction

MDL exists only in federal court. The JPML can only transfer cases between federal district courts; it has no authority over state court actions. However, many MDL cases involve state law claims that reach federal court through diversity jurisdiction (when plaintiffs and defendants are from different states and the amount in controversy exceeds $75,000).

Class actions can be filed in either federal or state court. Federal class actions proceed under Rule 23, while each state has its own procedural rules for class actions in state court.

Plaintiff Status and Control

This difference is fundamental. In an MDL, you remain an individual plaintiff with your own lawsuit. Your case is consolidated with others only for pretrial purposes. You retain the right to make decisions about your specific case, including whether to accept a settlement offer.

In a class action, individual plaintiffs effectively merge into a single group represented by class counsel. The named plaintiffs (class representatives) make decisions on behalf of everyone, and absent class members are bound by the outcome unless they formally opt out.

How Compensation Works

MDL settlements typically account for individual differences. Because each case remains separate, settlement amounts can be tailored to factors like the severity of your injury, your medical expenses, and the strength of evidence linking your harm to the defendant's product. Many MDL settlements use "settlement grids" or tiered structures that categorize plaintiffs based on injury type and severity, with different compensation ranges for each tier.

Class action settlements, by contrast, typically divide a lump sum among all class members, often resulting in smaller individual payments. In some class actions, each class member receives an identical amount regardless of individual circumstances.

The Litigation Process

MDL consolidates pretrial proceedings only. A single federal judge handles discovery (the exchange of evidence), decides motions, and manages the litigation. The MDL court may select bellwether cases to go to trial as test cases, helping both sides evaluate the strengths and weaknesses of claims.

After pretrial proceedings conclude, MDL cases that haven't settled are technically supposed to be remanded (sent back) to their original courts for trial. In practice, very few cases reach this stage. Most MDLs resolve through settlement, and fewer than 3% of cases are remanded.

Class actions proceed as a single case from start to finish. If the class is certified and the case goes to trial, one verdict applies to all class members.

Which Procedure Applies to Your Case?

Product liability and pharmaceutical injury cases overwhelmingly proceed as MDLs rather than class actions today. There's a practical reason for this: courts have found that personal injury cases usually fail the "predominance" requirement for class certification because individual issues (causation, damages, medical history) tend to outweigh common questions.

For example, the Johnson & Johnson talcum powder litigation (MDL-2738) proceeded as an MDL because plaintiffs suffered different types of cancer with varying severity, requiring individualized proof of causation. Similarly, the AFFF firefighting foam litigation (MDL-2873) uses MDL because affected plaintiffs include firefighters, military personnel, and community members with diverse exposure levels and health outcomes.

In contrast, if a company overcharged thousands of customers by the same fixed amount, a class action might be more suitable since all plaintiffs suffered identical, easily quantifiable harm.

Your Rights as an MDL Plaintiff

Understanding your rights in an MDL is essential:

• You have your own case. Even though your case is consolidated with others, it remains legally distinct. Your claims, evidence, and potential compensation are specific to you.
• You have your own attorney. While attorneys may coordinate their efforts and a Plaintiffs' Steering Committee typically leads the litigation, your individual attorney represents your interests.
• You can decide on settlement. When a global settlement is reached, you typically have the right to accept or reject the offer as it applies to your case. Unlike class actions, MDL settlements generally don't bind you without your consent.
• You may need to provide documentation. MDL plaintiffs usually must complete a "Plaintiff Fact Sheet" providing details about their injuries, medical treatment, and product exposure.

Your Rights as a Class Action Member

If your case is part of a class action:

• You will receive notice. Once a class is certified, courts require that class members receive notice of the lawsuit, typically by mail or publication.
• You may have opt-out rights. In class actions certified under Rule 23(b)(3), you can choose to exclude yourself from the class and pursue your own lawsuit. If you don't opt out, you're bound by the outcome.
• You share in any recovery. If the class wins or settles, you're entitled to your portion of the award, minus attorney fees and costs.
• You must approve settlements. Class action settlements require court approval, and class members can object to proposed settlements they consider unfair.

Frequently Asked Questions