What is a cy pres award in a class action settlement?
A cy pres award in a class action settlement is a form of settlement where a court awards money intended to benefit a certain group or cause. This type of settlement is used when a class action lawsuit has been filed in Washington, but the amount of damages is too small to make individual payments to the members of the class. In such a case, instead of making individual payments, the court orders the defendants to pay money to a third party who will distribute the money in some way that will best serve the interests of the plaintiffs. For example, a class action suit may be brought against a group of manufacturers that have been selling substandard products. The damages may be too small to make individual payments to each plaintiff, so the judge orders the defendants to pay a cy pres award to a third party that is able to properly distribute the funds in a manner that is beneficial to the class of plaintiffs. This could include payment to a charity or fund that can best advance the class’s interests or provide some form of restitution that is meant to benefit the class as a whole. A cy pres award can be an effective way to provide restitution to a class of plaintiffs in a class action lawsuit while recognizing the fact that an individual award to each plaintiff may be impossible or too small to do any good. As such, it is a tool of last resort, as courts are expected to provide class members with direct compensation when possible.
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