Class Actions and Claims Administrators: Lessons for Evaluating Class Notice and Settlement Programs

This CLE webinar will review the allegations and problems alleged in In re Class Action Settlement Administration Litigation, MDL 3162 (D.D.C.), and discuss what class action attorneys need to know about notice and administration practices. The panel will offer guidance on due diligence when evaluating claims administrators, ensuring adequate transparency and disclosure to courts, avoiding excessive unclaimed funds, addressing the problem of fraudulent claims, and reducing transaction costs, and will preview newer approaches and technologies for these processes.

In re Class Action Settlement Administration Litigation, MDL 3162 (D.D.C.) alleges that the defendant class action claims administrators had undisclosed and improper arrangements with banks, fintech companies, debit card issuers, and others that allowed the defendants to receive settlement funds that should have gone to claimants. The defendants, which represent the vast majority of this industry, strongly deny any wrongdoing. Discovery is in process.

Nonetheless, the MDL has shone a spotlight on claims notice and administration, inviting all stakeholders to revisit Rule 23's notice requirements and the realities and complexity of claims administration under heightened judicial scrutiny. Over time, the key concerns in the claims administration process have changed, and payment methods once thought efficient and convenient provide little or no value to claimants. Many are looking for answers in new platforms and AI-fueled management that reduces the number of intermediaries between claimants and payment. 

Listen as this experienced panel provides a comprehensive overview of the class notice requirements and how the administration process works, and offers a glimpse into proposals for better results.