Pro rata payout

A pro rata payout means the settlement money is divided proportionally among valid claims rather than paid as a fixed amount to each person. Pro rata is Latin for in proportion.

This approach is common when the number of claims or the total losses do not match the size of the fund. Each valid claim can be scaled up if money is left over, or scaled down if the fund is not large enough to pay everyone the full estimated amount.

Because of this, an estimated payment listed early on can change once all claims are counted. The final amount depends on how many people file and how the terms allocate the fund.