Class action lawsuits are usually resolved with one of two settlement structures: a common-fund settlement or a claims-made settlement. A simple way to think about the difference between the two is that the former is for a fixed amount while the cost of the latter is variable.
Common-Fund Settlements
In a common-fund settlement, the defendant agrees to the total cost of the settlement it will pay, i.e., the “common fund,” the pool of money from which all settlement expenses are deducted. These expenses generally include valid claims, plaintiffs’ attorneys’ fees and expenses, class representative incentive awards and settlement administration costs. While the amount each claimant receives is based on how many claimants file valid claims, the overall amount paid by the defendant is set on day one.
Claims-Made Settlements
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [emailprotected]
You Might Like
How Florida Supreme Court Changes Affect Firms: AI Concerns at Forefront
By Lisa Willis
5 minute read
Meet the Daily Business Review's New Regional Managing Editor
By ALM Staff
2 minute read
11th Circuit Rejects Private School's Religious Rights Claim When Stopped From Broadcasting Public Prayer
By Mason Lawlor
6 minute read
Greenberg Traurig Launches São Paulo Office to Boost Expansion in Latin America
By Amy Guthrie
4 minute read
- Latest
- Trending
- {{#each content.latest}}
{{ cardHeaderSimple }}
{{ summary }}
Read More
{{/each}}
- {{#unless content.trending.user}} {{#each content.trending.global}}
{{ lawfirm }}
{{count}} new blips
{{/each}} {{ else }} {{#each content.trending.user}} {{ lawfirm }}
{{count}} new blips
{{/each}} {{/unless}}
{{#unless content.trending.user}}
Learn More About Radar
{{ else }}
Open My Radar
{{/unless}}
Trending Stories
-
The American Lawyer
International Edition
p*rnhub and Visa Face Sex Trafficking, Child p*rnography Claims from 34 Plaintiffs After NYT Report
The Recorder
The UK Top 50 Ranked By Revenue: Big Rises Mask Slower Underlying Growth
International Edition
Below-Market Associates Believe They Deserve the Market Compensation. Are They Right?
The American Lawyer
- 25 Years of the Am Law 200: Is Size as a Strategy a Winning Formula?
- What Associates Really Think: A Deep Dive on Lawyer Satisfaction, Professional Development and How Firms Are Rethinking Talent Management
Featured Firms
Law Offices of Gary Martin Hays & Associates P.C.
75 Ponce De Leon Ave NE Ste 101
Atlanta, GA 30308
(470) 294-1674
www.garymartinhays.com
Law Offices of Mark E. Salomone
2 Oliver St #608
Boston, MA 02109
(857) 444-6468
www.marksalomone.com
Smith & Hassler
1225 N Loop W #525
Houston, TX 77008
(713) 739-1250
www.smithandhassler.com
Presented by BigVoodoo
More From ALM
- CLE Center
- Law.com Compass
- Lawjobs
- Professional Announcements
Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
From Data to Decisions
Dynamically explore and compare data on law firms, companies, individual lawyers, and industry trends.
Exclusive Depth and Reach.
Law.com Compass includes access to our exclusive industry reports, combining the unmatched expertise of our analyst team with ALM’s deep bench of proprietary information to provide insights that can’t be found anywhere else.
Big Pictures and Fine Details
Law.com Compass delivers you the full scope of information, from the rankings of the Am Law 200 and NLJ 500 to intricate details and comparisons of firms’ financials, staffing, clients, news and events.
General Counsel Conference Southwest 2024
September 18, 2024 - September 19, 2024
Dallas, TX
Join General Counsel and Senior Legal Leaders at the Premier Forum Designed For and by General Counsel from Fortune 1000 Companies
September 24, 2024
Chicago, IL
Women, Influence & Power in Law Awards honors women lawyers who have made a remarkable difference in the legal profession.
September 23, 2024 - September 25, 2024
Chicago, IL
WIPL is the original global forum facilitating women-to-women exchange on leadership and legal issues.
Go to Events Go to Webcasts
Lecturer in Legal Skills and Values
Florida International University College of Law, South Florida s public law school, invites applicants for a contract position in Legal Skil...
Legal Practice Assistant
LEGAL PRACTICE ASSISTANT- NEW JERSEY OFFICE: Prominent mid-Atlantic law firm with multiple regional office locations seeks a Legal Practice...
Workers Compensation
Maggs, McDermott & DiCicco is seeking an associate with approximately 5 years of worker s compensation experience who is committed to ex...
Subscribe to Daily Business Review
Don't miss the crucial news and insights you need to make informed legal decisions. Join Daily Business Review now!
Unlimited access to Daily Business Review
Access to additional free ALM publications
1 free article* across the ALM subscription network every 30 days
Exclusive discounts on ALM events and publications
Join Daily Business Review
Already have an account? Sign In