Settlement fund

A settlement fund is the total amount of money a defendant agrees to pay to resolve a class action. The company agrees to the amount to settle the claims, typically without admitting that it did anything wrong.

The fund is not paid to any single person. It is divided among everyone who files a valid claim, and it often also covers administration costs, legal fees, and payments to the class representatives, subject to court approval.

Because the fund is shared, the amount each person receives depends on how many valid claims are filed and how the settlement terms split the money.