Class Action Settlement Glossary

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Asset Locator (Heir Finder) An asset locator, sometimes called an heir finder, is a private person or company that searches for owners or heirs of unclaimed property and offers recovery…
Automatic Renewal Law A consumer-protection law that regulates disclosures, consent, notices, and cancellation for covered recurring offers.

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Bankruptcy Unclaimed Funds Bankruptcy unclaimed funds are money held by a federal bankruptcy court for an owner, creditor, successor, or other claimant who may be entitled to a distribution…

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Claim form A claim form is the document you submit to a settlement administrator to request your share of a settlement.
Claims Aggregator (Claim Farms and Third-Party Filers) Claims aggregator is an informal term for a business or service that helps submit settlement claims for multiple people, sometimes in large batches. The related phrase…
Class action A class action is a lawsuit where one or a few people sue on behalf of a larger group who were affected in a similar way.
Class Certification A court decision allowing named representatives to pursue specified claims or issues on behalf of a defined group.
Class Certification Class certification is the court’s formal decision that a lawsuit can move forward as a class action instead of as one person’s individual case. Until a…
Class member A class member is anyone who falls within the group of people a class action or settlement is meant to cover.
Class Period The date range used in a class definition to identify qualifying purchases, activity, employment, or other events.
Class period The class period is the specific range of dates during which you must have been affected to qualify for a settlement.
Common Fund Doctrine A legal principle allowing reasonable attorney fees to be paid from a shared recovery so the people who benefit share the cost of obtaining it.
Court-Authorized Settlement Website Court-authorized settlement website means a website identified in a court-approved notice plan for a particular class action settlement. It gives potential class members a central place…
Cy pres Cy pres refers to leftover settlement money that is donated to a relevant nonprofit or cause when it cannot practically be distributed to class members.

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Deficiency Notice (Class Action) Learn what a class action deficiency notice means, why administrators send one, how cure deadlines work, and what may happen if you do not respond.
Documented Loss Learn what a documented loss means in a settlement claim, which records may support it, and why payment rules differ from one settlement to another.
Dormancy Period The state-defined period of inactivity that may cause property to be treated as presumed abandoned and reported to an unclaimed-property program.
Duplicate Claim Learn what a duplicate settlement claim is, how repeated submissions are identified, and why the outcome depends on each settlement's rules.
Duplicate Claim A duplicate claim is a repeated submission seeking the same benefit from the same settlement for the same person, account, purchase, loss, or household. Duplicate claims…

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Fairly Traceable Learn what fairly traceable means in federal standing and settlement claims, how it differs from proximate cause, and why official terms control.
Fake Check Scam A fraud using a convincing check to make someone send money before the bank discovers the check is invalid.
Final Approval The court's decision approving a class action settlement after reviewing its fairness, distinct from individual claim approval and payment timing.
Final approval hearing A final approval hearing is the court date when a judge decides whether to approve a proposed class action settlement.

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Lodestar Lodestar is a method for calculating attorney fees by multiplying the hours reasonably worked by a reasonable hourly rate. The resulting figure provides a starting point…
Lost Time Payment (Time Spent) A lost time payment, sometimes called time spent compensation, is a settlement benefit that may reimburse eligible class members for reasonable time spent completing tasks covered…

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Multidistrict Litigation (MDL) Multidistrict litigation, or MDL, is a federal procedure that consolidates many separate but related lawsuits — often filed by plaintiffs across different states — into a…

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Named Plaintiff A named plaintiff is the person, or small group of people, whose name actually appears on a class action lawsuit. Also called the lead plaintiff or…
NAUPA NAUPA stands for the National Association of Unclaimed Property Administrators, a network within the National Association of State Treasurers that supports government unclaimed property programs and…
Net Settlement Fund The money available for distribution after the deductions specified in a settlement agreement and court orders.
Numerosity The class action requirement that a proposed group be large enough to make joining every member individually in the lawsuit impracticable.

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Objection An objection is a formal statement to the court by a class member who thinks a proposed settlement is unfair or should be changed.
Opt-out (exclusion) Opting out, also called requesting exclusion, means formally removing yourself from a class action so you keep the right to sue on your own.
Out-of-Pocket Losses Learn what out-of-pocket losses mean in settlement claims, which expenses may qualify, what proof may be required, and why each notice controls.

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PAGA (Private Attorneys General Act) PAGA stands for the Private Attorneys General Act, a California law that lets an eligible employee seek civil penalties for certain Labor Code violations on behalf…
Payment Election Learn what a payment election means, which settlement payment methods may be offered, and what to check before choosing how to receive your money.
Pro rata payout A pro rata payout means the settlement money is split proportionally, so each valid claim is scaled up or down to fit the available fund.
Proof of purchase Proof of purchase is documentation, like a receipt or order confirmation, that shows you bought a product or used a service covered by a settlement.

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Reasonable Documentation Learn what reasonable documentation means in a settlement claim, which records may qualify, and why the official claim instructions control.
Residual Funds Money remaining after a settlement's approved claims, costs, fees, and other required distributions have been handled.

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Service Award (Incentive Award) Learn what a class action service award is, why courts scrutinize it, how it differs from class payments, and why availability varies.
Settlement administrator A settlement administrator is the neutral company a court approves to run a settlement, review claims, and send payments.
Settlement fund A settlement fund is the total pool of money a defendant agrees to pay to resolve a class action, which is then divided among eligible claimants.
Settlement Scam (Fake Settlement Notice) Learn how fake settlement notices work, which warning signs matter, and how to verify a class action message before sharing information.
Settlement Tiers Learn how settlement tiers divide benefits by eligibility or proof and why each settlement's official documents determine the available payment levels.
Slack Fill The space between a package's capacity and the product inside, which may be misleading when it has no recognized function.
Subclass (Class Action) A formally defined group within a class action with particular claims or interests that warrant separate treatment under the applicable class-action rules.
Sucker List An informal term for a list of previous scam victims who may be targeted again through refund or recovery fraud.

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The “Do Nothing” Option Learn what the do nothing option means in a class action settlement and how it may affect payment eligibility, legal rights, and released claims.
Tolling A pause in a legal time limit, usually the period for filing a lawsuit, that does not automatically extend settlement claim deadlines.
Typosquatting (Lookalike Settlement Sites) Typosquatting is the practice of registering a domain name that closely resembles a legitimate website address, often by changing, adding, or removing a character or using…

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Verification Notice Learn what a settlement verification notice means, why an administrator may send one, and how to confirm it is legitimate before responding.
Virtual Card A digital payment card that provides access to a prepaid settlement or refund balance without a physical card.

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W-9 An IRS form that gives a payer the legal name and taxpayer identification number needed for certain federal information reporting.

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1099-MISC An IRS information return used to report certain miscellaneous payments, including some nonwage settlement proceeds, to the recipient and the IRS.

Class Action Glossary

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