If a law firm decides there s a good case to be made, it drafts a complaint, files it with the court, and serves the defendant with notice of the suit. They can take years, and just getting them certified as class actions by a court can take a long time. Defendants may file motions to dismiss the case or motions about conducting discovery, both of which can delay a case. The court has to approve the settlement and then award attorney fees. Plaintiffs then have to submit claims that show they were a member of the class.
Compensation often comes in the form of a discounted insurance policy rather than money.
In some class actions, if the amounts would be too small to send to class members, the settlement money is given to a charity or other non-profit cause. If you stay in the class but are displeased with the settlement, you can file objections to the settlement. Usually this means you'll appear with legal counsel at a fairness hearing, where you'll appeal the court's approval of the entire settlement and ask an appellate court to reverse it. Unfortunately there's no single place to go, but rather lots of different ones. You can start with a search on the Internet, then take a look at press releases on your insurance company's Web site.