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

A cy pres award in a class action settlement is a court-ordered distribution of settlement funds to organizations or causes that are related to the purpose of the lawsuit. This type of award is common in California class action law where damages may be too small to be divided among individual class members. In such cases, the court can order the funds to be distributed to a non-profit or charity that is in-line with the objectives of the lawsuit. For example, if a class action lawsuit is brought against a company for false advertising, and the amount of damages is too small to be split among individual class members, the court may allow the funds to be distributed to a consumer protection organization or a public charity devoted to research and education around consumer rights. In some cases, a cy pres award may be used to fund a scholarship program for students in the same field as the class action lawsuit. This type of award is particularly useful for cases involving small damages from a wide variety of claimants. By distributing these funds to organizations that fulfill the objectives of the lawsuit, the court ensures that the class members still receive some form of recompense for their losses.

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

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