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

A cy pres award in a class action settlement is a type of legal award given to a third party in lieu of members of the class action lawsuit receiving direct payments. This type of award is often used when it is difficult or impossible to identify and contact all members of a class action lawsuit in order to distribute the settlement funds. In Kansas, a cy pres award is a remedy derived from the French phrase “cy pres comme possible,” meaning “as near as possible.” The award is given to a third party, such as a charitable organization, which can use the money to benefit the members of the class action lawsuit as a whole, even though the individual members do not receive the payment directly. In most cases, the court reviews and assesses how the cy pres award should be distributed. This may include an evaluation of which organizations would benefit members of the lawsuit, in what way, and for how long. For example, if the class action lawsuit were related to a defective product, the court may determine that a cy pres award should be given to a charity that offers assistance to those affected by the defect. The cy pres award could be used to offer free repairs, replacements, or other solutions to those affected by the defect. Ultimately, a cy pres award is an important tool in the class action process. It allows for a legal remedy to be distributed to those affected by a legal issue even if they are unable to be contacted or identified.

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

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