Top Class Actions|November 17, 2016
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The class action settlement check you’ve been waiting for has finally arrived. But when you open the envelope, you’re disappointed to see that the amount is significantly less than the estimated payout that was posted on the settlement website. No, you’re not getting ripped off and the attorneys aren’t getting the money you were supposed to get.
The most common reason class action settlement payouts are less than expected is because an unexpectedly large number of Class Members submitted claims. There are several factors that may play into this, including:
- If the settlement involves an extremely popular product, such as milk or canned tuna, there will be more eligible Class Members who have purchased those products and who may file claims.
- Settlements that do not require claimants to submit proof of purchase or any other form of documentation tend to get a larger number of claims.
In addition, if you’ve been a reader of Top Class Actions for a while, you’ve probably noticed that many class action settlement payouts are distributed on a pro rata basis. This means that the funds will be distributed in proportion to the number of claims that are filed. If a large number of claims are filed, the amount each claimant receives will be reduced proportionally.
When asking a judge to approve a class action settlement, Class Counsel often calculates an estimated range of payments that Class Members can expect to receive. This helps the judge determine whether the settlement is fair to the Class Members. Although the attorneys do their best to predict how many Class Members are likely to file claims, sometimes an unexpected number of claims are filed.
This begs the question: Do sites like TopClassActions.com, whichreport on class action settlements, dilute the pool of money available for claimants by getting more qualified people to submit claims? The answer is: NO!
As more and more consumersparticipate insettlements that they qualify for, settlement awards will continue to increase.In the past,some defendants have relied on the fact that most consumers will never see or may even ignore a settlement notice. This allowed them to get away with paying smaller settlements. But as sites like TopClassActions.com increase the number of valid claims being submitted, judges will have no choice but to require defendants to pay largersettlements that will accommodate a large number of claimants.
In fact, so far in 2016 due to the high number of valid claims submitted by TopClassActions.com viewers, multiple settlements have gone BACK to the courts to increase the award amount. Your legitimate claims are having a positive impact on changing the way class action settlements are paid out and managed! In 2016, our viewers reported that they received huge payouts from a number of class action settlements, including up to $148 from iHeartMedia, $180 from Sprint, and as much as $2,00 from Ocwen!
How Can I Maximize My Payout?
Some class action settlements provide benefit options for Class Members. In some cases, Class Members may have the option to submit proof of purchase for a settlement. Generally, claimants who provide proof of purchase will be entitled to a higher payout than claimants who do not. If you hold on to receipts or have other documentation of your purchase, it’s probably worth your time to send it in with your Claim Form.
Top Class Actions reports on every open settlement that we find. We help thousands of consumers become aware of class action settlements they qualify for. To find out which settlements are currently accepting claims, visit our Open Settlements section.
Related FAQ Articles:
Why Haven’t I Received My Settlement Check Yet?
