What is the process for distributing class action settlement funds?
In Washington, the process for distributing class action settlement funds depends on the type of settlement in question. For example, if the case involves a cash award, the funds may be distributed directly to the members of the class action suit. The court may also opt to distribute the funds through a claims administrator, who is responsible for reviewing the claims and determining who is eligible to receive a portion of the award. If the settlement is non-cash, such as coupon awards or services, the court may require a third party such as a claims administrator to manage the distribution. The claims administrator may review the claims and approve or reject each individual claim. Once approved, the administrator will then assign each class member an award of the settlement funds. In addition, the court may also decide to have a cy pres award, where instead of giving the funds directly to the class members, the funds are instead donated to a charity or used toward a public purpose which advances the interests of the class. Finally, the court may approve a settlement where funds are put into a trust. This trust would then be used to provide funds or services to the class members according to predetermined terms, such as providing funds for medical treatment or educational programs. Regardless of the type of class action settlement, the court must approve any distribution of funds to ensure fairness among the members of the class.
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