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

A cy pres award in a class action settlement is an award of settlement funds that are not used to pay restitution to class members. Instead, this portion of the settlement is typically awarded to a third-party organization that is related to the goals of the class action lawsuit. These awards are commonly used when the original amount of the settlement is too small to be distributed among all of the class members, or when contact information for the original class members cannot be found. In class action cases brought in Arkansas, cy pres awards are authorized by Arkansas Supreme Court Rule 23(f), which states that settlements should include a reasonable provision for attorneys’ fees, notice of the settlement, and a cy pres award to a “charitable organizations related to the claims in the action.” The Arkansas Supreme Court then reviews the cy pres award to ensure that the award is appropriate and consistent with the goals of the class action lawsuit.

Related FAQs

How is the class of plaintiffs in a class action lawsuit determined?
What is the purpose of a class action certification order?
How does a class action lawsuit differ from a class action arbitration?
What are the legal requirements to become a class representative in a class action lawsuit?
What are the differences between the federal and state class action lawsuits?
How is a class action lawsuit certified?
What is an aggregate settlement in a class action lawsuit?
What is the difference between a class action lawsuit and an individual lawsuit?
What is an opt-in class action lawsuit?
What happens when the class action lawsuit goes to trial?

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

Related FAQs

Related Blog Posts