Understanding ADA Lawsuits and Settlement Amounts

The steady increase in lawsuits related to the Americans with Disabilities Act (ADA) has woken up organizations across industries. More are recognizing that an ADA demand letter or lawsuit doesn’t just come with legal fees, but also potential settlements that could cost tens of thousands of dollars or more. 

In the last year alone, the number of ADA lawsuits increased by 7%, with settlements ranging from $5,000 to over $400,000, depending on the nature of the violations. As the number of ADA lawsuits increases, no industry is off-limits. Retailers, healthcare providers, financial institutions — all have been targeted for non-compliance with the ADA and faced severe legal and financial consequences. 

Understanding what these cases typically settle for — and what drives those numbers — can help you take more proactive steps to ensure your digital content meets ADA compliance requirements, and how to respond if you receive an ADA demand letter. 

What Affects ADA Violation Settlement Amounts? 

Every ADA violation or lawsuit differs, meaning the settlements behind them will vary. Not because there’s a standard formula, but because each case hinges on a unique mix of factors. Everything from the severity of the violation to the strength of your response can influence what a business ultimately pays. 

With that in mind, let’s explore some of the key factors that tend to affect digital accessibility settlement amounts: 

Nature of the ADA Violation

Not all accessibility issues are treated the same. Settlements tend to be higher when violations are considered systemic or significantly impact a user’s ability to access core services — such as completing a purchase, scheduling an appointment, or reading critical health, financial, or government information. 

On the other hand, isolated or easily fixed issues may be met with more leniency, especially if the organization demonstrates a willingness to address the problem quickly and thoroughly.

Company’s Track Record

Repeat offenders — or companies with no visible accessibility initiatives — often face steeper settlements. If your organization doesn’t have an accessibility statement or plan in place, it may appear negligent.

Showing a history of taking digital accessibility seriously — like partnering with accessibility experts like AudioEye or a written statement of improvements you’ve made — can demonstrate good faith and potentially reduce liability.  

Reasonable Accommodation Requests

If a user requested reasonable accommodations — like asking for an accessible document or captions for videos — and that request was ignored, that can significantly increase the organization’s liability. 

On the other hand, if you can show documented efforts to provide accommodations and create an accessible work environment, even if the execution wasn’t perfect, that can work in your favor during settlement negotiations. 

Evidence and Documentation

ADA settlements often come down to what can be proven. Plaintiffs who bring clear evidence — including screenshots, screen reader output, email threads, or witness statements — are in a stronger position to negotiate. 

From the business side, documentation of audits, accessibility fixes, vendor partnerships, and employee accessibility training can help demonstrate ongoing efforts toward website accessibility and compliance, which may mitigate damages. 

Expertise of Legal Representation

Lastly, the legal teams involved in your ADA lawsuit matter — a lot. Plaintiffs represented by law firms that specialize in ADA litigation often pursue higher settlements and are less likely to accept quick, low-dollar resolutions. Likewise, businesses with experienced accessibility attorneys are better equipped to push back, settle strategically, and avoid overpaying.

Stylized screen with 'ADA' on the left side of the screen and a bookmark on the right side. An icon of a balanced scale is in the lower right-hand corner.

ADA Lawsuits vs. Settlements

If you receive a demand letter or formal complaint for a lack of accessibility, the first question that might arise is: Do we fight this? Or do we settle? 

It’s a big decision — and one that depends on your risk tolerance, resources, and how strong your accessibility case really is. 

Here’s how ADA lawsuits and settlements typically compare. 

Settlements: Faster, Quieter, and (Usually) Less Expensive

The majority of digital accessibility solutions never make it to court — they settle. Why? Because settling is often the quickest and least costly path forward, especially if you don’t want prolonged legal distractions or public exposure. 

Pros of Settling:

• Avoids the uncertainty (and expense) of a trial.

• Typically less expensive than a drawn-out legal defense.

• Keeps things out of the public eye (many settlements are confidential). 

• Lets you focus on fixing accessibility issues rather than litigation.

Cons of Settling:

• You may still pay hefty fines or fees — even if the case feels minor.

• Some settlement agreements require ongoing monitoring or third-party audits.

• Can set a precedent if you’re not actively addressing accessibility. 

Lawsuits: Higher Stakes, Longer Timelines

Choosing to fight an ADA lawsuit can make sense in some cases — especially if you believe the claim is unfounded or if the plaintiff is part of a high-volume litigation firm targeting businesses indiscriminately. But be prepared: Litigation is time-consuming, expensive, and can put your brand under severe scrutiny. 

Pros of Fighting:

• Opportunity to challenge baseless claims or abuse of the system. 

• May discourage future frivolous lawsuits. 

• Could result in dismissal or a favorable judgment (though rare).

Cons of Fighting:

• High legal or attorney fees and months (or years) of back-and-forth.

• Public court records can create reputational risk.

• You’ll still need to address alleged accessibility issues, regardless of the outcome.

Put simply, settlements are about risk management; lawsuits are about making a stand — and sometimes, the cost of making that stand is more than you may want to take on.

Judge's podium with a balanced scale on the front and a large accessibility symbol on top.

ADA Lawsuit Rulings

As mentioned above, most digital accessibility claims are settled outside of court. However, some go the distance and take their case to court — and the outcomes can be eye-opening. When a case does result in a formal ruling, the court has the power to award different types of relief, both financial and non-financial. 

Understanding what’s at stake in both types of rulings can help you better assess your legal risk — and show just how important it is to keep accessibility in mind from the start.

Different Types of Monetary Relief

If the court rules in favor of the plaintiff, several forms of monetary damages may be awarded, depending on the nature of the violation and how it impacted the plaintiff. Some of these include:

• Compensatory damages: Intended to reimburse the plaintiff for out-of-pocket costs or emotional distress caused by the lack of accessibility. 

• Punitive damages: These are less common in disability discrimination cases, but when awarded, they punish willful or reckless disregard for the law. 

• Nominal damages: A symbolic amount (often $1) is awarded when a violation or discrimination claim is proven, but no measurable harm can be shown. 

• Back pay: Covers lost wages or salary from the time of the discrimination lawsuit to the ruling. This typically happens in employment cases where ADA violations occurred. 

• Front pay: Future wages lost as a result of the ADA violation, particularly if wrongful termination occurred and reinstatement isn’t possible. 

• Lost benefits: Includes things like missed healthcare or medical expense coverage, retirement contributions, or bonuses. 

• Court costs and legal fees: The losing party may be required to cover the plaintiff’s legal expenses — which can add up quickly. 

These types of damages are not just theoretical. More recent ADA lawsuits have awarded six-figure judgments in digital accessibility cases where plaintiffs demonstrated they could not access essential services or suffered long-term consequences. 

Non-Monetary Aspects of ADA Rulings

ADA rulings aren’t just about money — courts can also require specific actions to address the violation and prevent future harm. These are often just as important (and sometimes more costly) than dollar amounts. 

Common non-monetary outcomes include:

• Commitment to training: Courts may require businesses to provide accessibility training for staff. Many organizations turn to accessibility platforms or solutions, like AudioEye, which offer training modules designed to help teams understand, meet, and implement accessibility standards. 

• Reasonable accommodation: If the plaintiff requested help accessing content or using a service, and the organization failed to provide it, the ruling may require accommodations moving forward. 

• Reinstatement: In employment cases, courts can order that the individual be rehired or reinstated to a previous role if the ADA violation led to a demotion or termination. 

In short, a court ruling goes beyond financial penalties — it can reshape how your organization operates moving forward.

Disability Discrimination Settlement Amounts

When ADA website lawsuits are resolved out of court — which happens more often than not — the case details are usually kept confidential. However, there are publicized cases, attorney insights, and legal trend reports that are available. The insights from these records paint a pretty clear picture: digital accessibility settlement amounts can vary significantly, but they often fall within a certain range depending on the size of the organization, the nature of the violation, and how the case was handled. 

The average settlements in digital ADA cases fall between $5,000 and $50,000, though some have reached six figures or more. For example, larger companies and cases involving repeat violations or employment discrimination tend to be on the higher end. 

Notable Out-of-Court Settlements

While details of most private settlements remain undisclosed, there are a few with notable details:

• Domino’s Pizza: Though the case made it all the way to the Supreme Court (which declined to hear it) in 2019, the lawsuit itself was ultimately settled out of court. The plaintiff, who was blind and unable to use the website to order food, reportedly reached a confidential agreement after years of litigation. 

• Netflix: Faced with a lawsuit for not providing closed captions for its streaming content, Netflix reached a landmark settlement with the National Association of the Deaf. While the monetary terms weren’t disclosed, the agreement required Netflix to caption 100% of its streaming library, setting a major accessibility precedent.

• Florida State University: In a 2021 settlement involving accessible online coursework, the university agreed to update its web content, improve training, and designate a digital accessibility coordinator. Though the financial portion wasn’t public, the non-monetary terms reflect the growing importance of digital accessibility in higher education. 

Ultimately, these cases highlight a trend: even if the payout isn’t massive, the operational requirements of a settlement can be just as impactful. 

Non-Monetary Aspects of ADA Settlements

A settlement out of court doesn’t mean you’re just writing a check and walking away. Many ADA settlements — especially those involving online accessibility — include non-monetary terms that require organizations to take tangible, long-term steps towards compliance.

Common non-monetary settlement terms can include:

• Accessibility training for employees and developers, like AudioEyeQ, will enhance staff’s understanding and application of accessibility best practices. 

• Hiring accessibility consultants or vendors to audit and fix digital content or properties. 

• Policy updates, like adopting a formal accessibility statement and integrating accessibility standards from the Web Content Accessibility Guidelines (WCAG) into development workflows.

• Timelines and reporting, which may require the organization to provide progress updates or undergo future audits. 

Coming to the table with a clear plan — or proof that you’ve already taken steps to enhance accessibility — can make a massive difference. It’s not about protecting your business legally; it’s about demonstrating good faith and a real willingness to create accessible content for all users. 

What to Expect from ADA Violation Cases

Now that you understand what goes into ADA settlement amounts, let's take a closer look at what actually happens if you’re sued for an ADA violation. 

First, know you’re not alone. ADA demand letters and lawsuits have become increasingly common — especially as digital accessibility continues to be a major focus for enforcement and advocacy. But as overwhelming as it may feel, there’s a path forward. And the sooner you take action, the better positioned you’ll be.

Step 1: You Receive a Demand Letter or Formal Complaint

This is your heads-up that someone is alleging your website or digital property is not accessible under the ADA. The complaint may come directly from an individual or be filed by a law firm on behalf of the plaintiff. Most include a deadline for response. 

Most importantly: Don’t ignore it. Taking the complaint seriously from the start can help you avoid escalation. 

Step 2: Evaluate the Complaint and Seek Legal Counsel

Get an attorney involved — ideally, one with ADA or digital accessibility experience. At this point, they’ll review the claim, assess any potential violations, start gathering documentation, and provide much-needed legal advice. This is also when many organizations consult with accessibility experts like AudioEye to conduct an accessibility audit.

Step 3: Investigate and Document

If you’ve made accessibility improvements — or have an accessibility statement, training records, or product roadmaps showing the efforts you’ve made to comply — now’s the time to collect that evidence.

Step 4: Settlement Discussions or Mediation

If both parties are open to settling, negotiations may begin quickly. Mediation can also be ordered by the court to help reach a resolution without going to trial. This is where your documentation and proactive steps (like working with accessibility vendors or committing to ongoing accessibility remediation) can work in your favor.

Step 5: Court Proceedings (if Necessary)

If no agreement is reached, the case moves forward, which means motions, discovery, and possibly a trial. This process can take several months to over a year, depending on the court’s schedule and the complexity of the case. 

The typical timeline for an ADA violation case can look something like this: