Members must submit claims to receive payment, and the structure caps actual exposure at the claims rate rather than the notional fund. Reversion of unclaimed funds draws scrutiny.
Claims rates are frequently low.
Alternative Names:
Claims Made Settlement|Claims Process Settlement
Why it Matters?
Reversion provisions returning unclaimed funds to the defendant draw the most scrutiny, since they align counsel's fee interest against maximizing claims rates and courts have rejected settlements where the practical payout was a small fraction of the announced value. Calculating fees against actual distribution rather than the notional fund addresses the objection and improves approval prospects.
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What draws the most scrutiny?
What improves approval prospects?
