Just came across this informative article from Rust Consulting on claim rates in class action settlements.
It’s a bit geeky or at least specialized, but the issue is important for lawyers who handle class actions and judges who oversee them. And actually, it’s important to consumers and businesses, too.
The question is: When a class action settles, how many people who are entitled to recover money will actually file claims? The article correctly explains that the rates vary, but there are some factors that allow for a prediction.
The claim process is one of those misunderstood things that leads to a lot of complaints about class actions. When a class action settles, and a consumer gets a claim form that will yield $6.26, it hardly seems worth the effort. It also leads to complaints that the lawyers earned “millions,” but the consumer only got $6.26.
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