What is a cy pres award in a class action settlement?

A cy pres award in a class action settlement is a legal term used to describe a form of legal action taken to compensate individuals in a class action suit. It is a type of fund that is created as part of the settlement, which is then distributed to persons affected by a particular corporate wrong-doing. The money is meant to be used to make up for the losses suffered by the class. The cy pres award is seen as a way to distribute the settlement money more equitably. In a class action lawsuit, the court only has access to limited resources to make a settlement, and cy pres awards are a way to make sure that more individuals in the class are taken care of. The cy pres award is also used when the individuals affected by the dispute have a varying degree of damages, and a set amount of money won’t adequately describe all the losses caused by the wrong-doing. In Alaska, a cy pres award can be used in a class action settlement when the court has determined that the best way to settle the dispute is to award monetary compensation to the affected class. This means that the court’s discretion was used to award the cy pres award, and the money is distributed in a way that is meant to give everyone in the class a fair outcome.

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What is a cy pres award in a class action settlement?

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