Top Class Actions  |  November 27, 2016

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Unclaimed class action settlement money

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?

What is a Class Action Settlement?

SEE ALL FAQ ARTICLES

62 thoughts onWhat Happens to Unclaimed Class Action Settlement Money?

  1. Melissa A Grannon says:

    just wanted me to pay money, no proof I had any settlements

  2. Barbara L Williamson-Rogers says:

    Please send me my check

  3. Kayla says:

    Please send me my check

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.