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What Happens to Unclaimed Class Action Settlement Money?
In some class action settlements, not all of the money set aside for Class Members is claimed. There can be several reasons why money may be left in the settlement fund after the awards are disbursed. For example: perhaps a small number of eligible Class Members filed claims; or many Class Members could not be located; or the claims that were filed were worth less than expected.
Many readers of Top Class Actions wonder what happens to unclaimed settlement money. The answer to that question depends on the particular class action settlement, and will be found in the settlement agreement. Because it is relatively common to have leftover money in the settlement fund after claims have been paid out, the parties will typically address the issue during negotiations.
Typically, the additional settlement funds will be distributed in one of the following three ways:
- Disbursement to Class Members. In some settlements, unclaimed funds will be distributed evenly to those Class Members who filed claims. These payments often appear as a second check in the mail, and come as a happy surprise to Class Members who had previously received payment from the class action settlement.
- Cy Pres Distribution. In other settlements, the unclaimed funds will be distributed to a charity, non-profit organization or university with the purpose of furthering the policy goals of the settlement. The term cy pres may be translated as “as near as possible.” In class action lawsuits, a cy pres distribution is often seen as an option that benefits Class Members and prevents the settlement money from reverting back to the defendant.
- Reverts to Defendant. In some cases, unclaimed settlement funds will revert back to the defendant.
You can find out how the parties have agreed to address unclaimed funds in the official settlement agreement, which has to be approved by the court as fair and reasonable. If you disagree with how they propose to disburse unclaimed funds, you can file an official objection with the court. Directions for filing an objection by the deadline will be found on the settlement administrator’s website and within the settlement agreement.
What Can YOU Claim?
Top Class Actions is committed to educating consumers about all available class action settlement money so that they can claim what they are entitled to claim. Make sure you don’t miss out on any free money to which you’re entitled and sign up for our free newsletter. We’ll let you know about the latest class action settlements and any filing deadlines that are approaching. You can also check out our Open Settlements section to find out which settlements are currently accepting claims.
Related FAQ Articles:
Why Was My Class Action Settlement Payout Smaller than Expected?
Why Haven’t I Received My Settlement Check Yet?
How Do I Submit a Claim for a Class Action Settlement?
62 thoughts onWhat Happens to Unclaimed Class Action Settlement Money?
I never heard back about a class action lawsuit against Lockheed California company back in the late 80s. I ran into a person I worked with back then and was told he received $ 69,000 is my share still out there?
I also worked for Boeing/Lockheed in the 80’s.
I need help finding my money
I was a claimant in the Lee-Ocwen class action lawsuit and received my check that was last in the mail after the void date on the check and I contacted the settlement administrator and was told that they wouldn’t re-issue my $600 check. I don’t think this is right or professional. Do I have any recourse to get a re-issue check.??
Please can anyone help me!
You can try contacting class counsel regarding your issue. They may be able to assist.
I forgot to deposit a class action check and it’s now expired. Am I still entitled to the money? If so, how would I go about collecting?
Thanks.
They sent me a text stating that i got a check coming?
1. Do the recipients of settlements have to declare them on their tax returns?
2. If the expiration date on a check has passed, can a replacement be sought?
1. You should consult a tax professional with any tax questions about settlement money you’ve received.
2. If you failed to cash your settlement check before it was void, you’ll need to contact the settlement administrator to inquire if a check reissue is possible. We offer settlement administrator contact information for every settlement we report on.
I have questions about the “Master Settlement Agreement” with Big Tobacco. My understanding is that the individual states receive payment from the fund and they are responsible for payout from there. Who do they make these payments to? Are payments made to individuals? If payments are made to individuals, how or where do they go to find out the requirements for eligibility? If they are eligible, how do they proceed from there?
Here’s a TCA article we’ve recent published for our viewers that may help answer your questions: https://topclassactions.com/lawsuit-settlements/lawsuit-news/724979-big-tobacco-settlement-offer-may-not-be-what-it-seems/>
Do you know of any resources regarding different states Cy Pres provisions attached to rule 23? Specifically provisions that set aside unclaimed funds to fund legal aid non profits.
You may want to contact your State’s Attorney General’s office with any questions about state specific laws. Good luck!
Memory foam mattresses were sold in Texas too, but claimants are not eligible. Why!
Hi Rina, Unfortunately, not all settlements include every state. Some settlements and lawsuits are based upon different state specific consumer protection laws. You can always contact class counsel for the lawsuit with any questions or concerns about a case you read about. We list counsel at the bottom of all of our lawsuit or settlement articles, and they can be Googled for contact information.
So if I worked for both Sams club then Walmart will I get two checks????
You should contact the settlement administrator with any questions about the status of your claim, and the number of checks you will receive.