Cy pres, from the French phrase meaning as near as possible, distributes residual settlement funds to organizations serving interests related to the class claims. It is used where individual distribution is infeasible or funds remain after claims are paid.
Courts require a nexus between the recipient and the class interests, and disclosure of any relationship between recipients and counsel or the parties.
Alternative Names:
Cy Pres, Cy Pres Remedy
Why it Matters?
Cy pres has drawn sustained judicial criticism, particularly where the class receives little while counsel receives substantial fees calculated against the full fund. Several appellate decisions have rejected settlements where cy pres was the primary distribution rather than a residual mechanism. Defendants should be aware that a structure heavy on cy pres invites objector challenges and appellate risk that can delay finality for years.
Frequently Confused with
Related terms
Frequently asked questions
When is cy pres appropriate?
Why is cy pres controversial?
