CLASS ACTION - DISPOSITION OF RESIDUAL FUNDS
U.S. District Court for the District of Connecticut
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(Amended November 7, 2016) (a) “Residual Funds” are funds that remain after the payment of approved class member claims, expenses, litigation costs, attorney’s fees, and other court-approved disbursements made to implement the relief granted. Nothing in this rule is intended to limit the parties to a class action from recommending, or the trial court from approving, a settlement that does not create residual funds. (b) The Court may approve a settlement proposal that designates the recipients(s) of any residual funds remaining after the claims payment process has been completed or, in the absence of an approved proposal, may designate the recipient(s) in its discretion. Any discretionary designation by the Court should include distribution of residual funds to charitable institutions for uses consistent with the legitimate objectives underlying the lawsuit, the interests of class members, and the interests of those similarly situated, when feasible.
Where no such charitable institutions can be identified, the residual funds may be designated for the organization administering the program for the use of interest on lawyers’ client funds pursuant to § 51-81c of the General Statutes for the purpose of supporting its activities including, but not limited to, the funding of those organizations that provide legal services for the poor in Connecticut.