If your class action lawsuit is successful, you’ll get a portion of the settlement or court award by lump-sum payment, structured settlement, or a single payment for smaller payouts. Class members who take part in a lawsuit but don’t have injuries or evidence often receive the smallest payments, while representative plaintiffs receive the largest payments.
How Class Action Settlement Funds Are Allocated
After the presiding judge in a class action lawsuit reviews the settlement offer and finds it fair and adequate, the settlement is divided. The lead plaintiff receives their percentage first, depending on their participation in the suit. Then, lawyers receive a percentage of their legal fees and costs. The remaining money is divided among the class members.
Attorneys’ Fees and Legal Costs
Law firms involved in class action litigation typically receive a court-approved percentage of the settlement fund, ranging from 25% to 35%.
Litigation Expenses and Administrative Costs
Administrative costs, such as claims processing, notice distribution, and case management, can account for 2 to 5% of the total settlement fund.
Service Awards for Lead Plaintiffs
Larger incentive payments may be given to named plaintiffs who represent the class. These payments are typically for a few thousand dollars, depending on the circumstances of the case.
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Notable Examples of Class Action Settlement Distributions
Facebook’s Illinois Privacy Settlement
In 2022, settlement checks were mailed to more than 1.42 million Illinois residents who filed claims in a seven-year, $650 million class action lawsuit against Facebook for biometric privacy violations. Payments to class members in the settlement ranged from $200 to $400, though the amounts received may vary depending on the number of claims filed.
The suit alleged that Facebook violated Illinois biometric privacy laws by collecting and storing users’ physical characteristics, including facial features, without their consent through facial recognition.
Equifax Data Breach Settlement
In 2019, the Attorney General and all 50 states reached a settlement with Equifax regarding a 2017 data breach. The breach was the largest-ever consumer data exposure, and hackers accessed the data of 56% of American adults. The $575 million settlement included a consumer restitution fund of up to $425 million, a $175 million payment to states, and injunctive relief, making it the largest data breach enforcement action ever.
Affected individuals received compensation for time spent dealing with the breach ($25 per hour for up to 20 hours). They also received reimbursements for credit monitoring services costs between 2016 and 2017. Cash payments were capped at $20,000 per person.
Facebook and Cambridge Analytica Privacy Settlement
Claimants in Facebook’s 2023 $725 million privacy settlement began receiving payouts in 2025. Millions of consumers were eligible to file claims against the company for improperly sharing their information with third-party entities such as advertisers and data brokers. The litigation was sparked by a 2018 Facebook scandal with Cambridge Analytica, which scraped user data from the site to profile voters.
Though the total settlement was for over $700 million, the average payout amount per person was about $30, with the maximum payout rising to almost $40. Payments were based on how many people filed claims and how long each claimant used Facebook during the covered 15-year period (2007-2022).
When Companies Take Advantage of Consumers, We Can Help
Class Action U’s accomplished partner attorneys at Milberg PLLC have successfully recovered more than $250 million for wronged consumers through alternative dispute resolution.
Do All Class Members Get the Same Amount?
In a class action lawsuit, settlements are divided depending on the terms approved by the court, and not all settlements are the same. In an equal distribution settlement, everyone gets the same amount. Contrarily, in a weighted distribution settlement, the court uses calculations to reflect each person’s losses.
In weighted distribution settlements, several factors can contribute to the amount of funds you receive, including the length of time you were exposed to harm, the severity of your physical or financial losses, and more. Documentation, such as receipts, is often necessary to prove these factors, and failing to submit evidence can decrease your payout.
How to Know What You May Receive From a Class Action Settlement
To learn an estimate of the compensation you may receive from a class action settlement, review any Official Settlement Notices you received. After the settlement, it’s common for months to pass before the first payments arrive, as the process can be lengthy. Speak with an attorney if you have any questions about your compensation in a class action lawsuit.
Frequently Asked Questions About Class Action Money Distribution
Can Settlement Payouts Change After Approval?
In some cases, class action settlement payouts can change after final court approval due to the number of claimants, whether any checks remain uncashed, and legal appeals. If fewer class members file claims for payment than expected, you may receive a second payment later on as the court works to disburse the rest of the funds.
What Happens if I Never Cash My Settlement Check?
If you don’t cash your settlement check, the government may retake custody of the funds so they can be redistributed to other class members. This only happens when an account shows no activity for several years, and the owner cannot be reached. Unused settlement funds may be redistributed with a second round of payments.
Can I File a Claim Even if I Miss the Deadline?
In most cases, if you submit your class action settlement claim late, it’s almost always rejected. Check your eligibility for existing class actions through Class Action U’s lawsuit feed.
