Class Action Litigation

Courts approving class action settlements often review how the parties have provided for settlement funds that either (1) cannot be distributed to individual class members because, for example, proof of individual claims is burdensome or distributing damages is costly; or (2) remain unclaimed following distribution to class members who make claims. There are several ways in which such funds can be distributed, including pro rata distribution to class members; reversion to the defendant; escheat to the government; or cy pres distribution. This article, written by Carlton Fields’ lawyers D. Matthew Allen, Kathryn Harrigan Christian, and Jaret J. Fuente, focuses on cy pres distribution.