What is the process for distributing class action settlement funds?
The process for distributing class action settlement funds in New York depends on the size of the settlement and the type of claim. Generally, claims administrators, attorneys, and court appointed fiduciaries are responsible for distributing the settlement funds. In larger settlements, the claims administrator will typically mail out a notice to all class members informing them of the settlement and how to file a claim for a recovery. The notice contains information on how to file a claim, what documentation is necessary, deadlines, and instructions for submitting a claim. In some cases, the claims administrator may hold a hearing to determine the validity of a claim and the amount to be paid to each claimant. For smaller settlements, the claims administrator may not send out notices and the court may require that any potential claimants file a claim before a certain date. The court may also appoint a fiduciary to oversee the process and review each claim and make a decision on whether to distribute the settlement funds and how much each person will receive. Once the claims administrator, attorneys, or court-appointed fiduciary have reviewed and approved all the claims, the distribution of funds will begin. This can be done by check, direct deposit, or other means. After the funds have been disbursed, the claimants should receive a notice informing them of how much they received and when they should expect to receive the funds.
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