Class actions, mass torts, and mass arbitrations are all legal paths to help you seek compensation from a person or business for damages. Class action lawsuits often get the headlines, but we are starting to see arbitration clauses everywhere—from job applications to app signups to online purchases. For years, companies have relied on these agreements to avoid costly class actions. And plaintiffs’ lawyers have found a powerful counterpunch: mass arbitration.

Let’s break it down. You’ve likely heard of a class action lawsuit. Maybe mass arbitration. And let’s not forget mass tort. So what exactly do each of those terms mean? And how are they different?

What is a Class Action Lawsuit? 

A class action lawsuit is a type of lawsuit that can be brought in state or federal court and is filed against a defendant on behalf of a large group of plaintiffs. The plaintiffs in the case have all suffered from the same or similar damages which the defendant is being accused of causing. In many class actions, a defendant will settle after a class suit is filed to avoid costly litigation or a potential trial. When settling, defendants typically offer some monetary remedy that is made available to all class members through a claims filing basis. 

What is a Mass Tort?

A mass tort involves many injured people, but each plaintiff is treated as an individual, not part of a single class. Plaintiffs usually come from the same region and must show their injuries stem from the same harmful conduct—like defective medical devices, fraudulent business practices, or faulty products.

Mass torts commonly end in financial settlements. However, unlike a class action, each plaintiff can accept or refuse the settlement offer based on their unique situation.

What is Mass Arbitration?

Mass arbitration flips the script. Instead of filing one class action, plaintiffs file hundreds or even thousands of individual arbitration demands at once. Each filing triggers substantial administrative fees—often hundreds to thousands of dollars per case—creating millions in upfront costs for the company before a single dispute is resolved. Each case is handled by a separate, neutral arbitrator, but the filings are coordinated through the same law firm.

This approach has surged in popularity as companies increasingly include arbitration clauses in consumer contracts. Mass arbitration keeps disputes out of court, pushes companies to resolve issues faster, and often leads to quicker outcomes for consumers.

Class Action vs. Mass Tort vs. Mass Arbitration

Although they’re often confused, they aren’t interchangeable.

• Class action: One case represents everyone in a single lawsuit. Plaintiffs have minimal involvement and are bound by the outcome.
• Mass tort: Each plaintiff keeps more control. Decisions and compensation are individualized, even though the claims are grouped for efficiency.
• Mass arbitration: Each person files their own claim, receives their own decision, and is awarded compensation based on their individual circumstances.

Why Participate in Mass Arbitrations? 

Many companies are waking up to the scale of mass arbitrations, but the reality is they chose to do things this way. 

Mass arbitrations can vary in the degree of offenses from antitrust accusations to data sharing practices being questioned. Attorneys working on these cases know big companies are often pushing the boundaries of what they can get away with and are continuing to find ways to hold them accountable. 

There are currently mass arbitrations being pursued against many of the Fortune 500 companies. Notably, Meta, Google, Amazon, and other tech giants are typically the ones facing the most scrutiny.

CCC is currently tracking some of the largest mass arbitration cases in the U.S. and wants to help both consumers and businesses participate when they qualify. Our research has shown that some mass arbitrations can even pay out upwards of 60% of damages which is a significant recovery for those participating. We want to help as many businesses and individuals as possible participate to recover what they are owed.