SettleSignal

Class Member ID / Notice ID: A unique code printed on the letter or email the settlement administrator sent you (formats vary: a long number, or a case prefix plus digits). Many online claim forms ask for it, and some won't let you file online without it. If you lost your notice, most administrators can resend your ID — contact them with your full name and mailing address. Filing by mail is often the fallback when an ID can't be recovered.
PIN (claim form): A second code that pairs with your Class Member ID on some claim portals — together they act as your login. Both appear on the mailed or emailed notice. A PIN is settlement-specific: a PIN from one case never works on another.
Claim deadline (claims bar date): The last day to submit a claim form. Online forms typically close at 11:59 PM on the deadline date; mailed forms usually must be POSTMARKED by that date. After it passes, the window is closed — late claims are generally rejected.
Proof of purchase: Documentation showing you bought the product or used the service — a receipt, order confirmation email, or bank/card statement line. Many settlements offer a smaller payment WITHOUT proof and a larger one with it. Administrators routinely reject "self-prepared" evidence (e.g. a typed note), so keep original records.
Out-of-pocket losses: Actual money you spent or lost because of the incident — fraud charges, credit-repair fees, monitoring costs, even documented time at a fixed hourly rate in some cases. Claims for these (often capped at $2,500–$5,000) require itemizing each loss with a date, an amount, and a supporting document.
Pro rata payment: A payment that depends on how many people file: the settlement fund is divided among all valid claims. If fewer people claim, each payment grows; if many claim, it shrinks. This is why an "estimated $125" can arrive as more or less than $125.
Settlement administrator: The neutral company the court appoints to run the settlement: mail notices, host the official claim website, validate claims, and send payments. Examples include Kroll, Epiq, Angeion, and Simpluris. The administrator — not the defendant, not any third-party site — decides whether your claim is approved.
Final approval (fairness hearing): The court hearing where a judge decides whether the settlement is fair and reasonable. Payments only start AFTER final approval — and usually after any appeals resolve, which can add months. This is the single biggest reason payouts take 6–18 months.
Opt-out (exclusion): Removing yourself from the settlement class by the exclusion deadline. You get no settlement payment, but you keep the right to sue the defendant on your own. Doing nothing keeps you in the class; filing a claim gets you paid.
Cy pres: Leftover settlement money that can't practically be distributed to class members (e.g. uncashed checks) and is donated to charities related to the case's subject instead of returning to the defendant.
Payment election: How you choose to be paid on the claim form: typically PayPal, Venmo, Zelle, a virtual prepaid card, direct deposit, or a mailed check. Electronic options usually arrive faster; mailed checks often expire 90–180 days after issue, so deposit them promptly.
Attestation (penalty of perjury): The signed statement at the end of a claim form confirming your answers are true. Submitting a false claim is fraud — file only for settlements where you genuinely qualify.
Class period: The date range that defines who is included — e.g. "customers who made a purchase between March 2019 and June 2023." Your purchase or account must fall inside the period; check it before spending time on a claim form.
Release of claims: What you give up by staying in the settlement: the right to sue the defendant over the same conduct later. Filing a claim (or simply not opting out) usually means accepting the release — it is the legal trade for the payment.
Lead plaintiff (class representative): The named person who sued on behalf of everyone — the "Lewis" in Lewis v. Register.com. They often receive a court-approved service award (commonly $500–$10,000) on top of their regular share.
Objection: A formal letter to the court saying the settlement's terms are unfair — without leaving the class. Objections are argued at the fairness hearing. Objecting is NOT how you get paid; filing a claim is.
Claims rate: The percentage of eligible people who actually file — often in the single digits (the FTC has reported medians around 9%, and ~4–6% is common). Low claims rates are why pro rata payments frequently come out HIGHER than the advertised estimate.
Exclusion / objection deadline: The cutoff for opting out of or objecting to a settlement — usually weeks BEFORE the claim deadline. After it passes you are bound by the release whether or not you file a claim, so the only money-relevant date left is the claim deadline itself.
Settlement Fund: The total pool of money the defendant agrees to pay to resolve the lawsuit. This amount is set in the settlement agreement and covers all valid claims, attorneys' fees, administrative costs, and sometimes a cy-pres donation. The portion left after expenses is what gets distributed to class members.
Net Settlement Fund: What remains in the settlement fund after the court has approved deductions for attorneys' fees, litigation costs, and claims-administration expenses. Your individual payment is calculated as a share of the net fund — not the headline settlement number you may have seen in news coverage.
Fairness Hearing: A court proceeding — also called the final-approval hearing — where a judge evaluates whether the settlement is fair, reasonable, and adequate for the class. Class members can speak at the hearing or submit written objections. The judge's approval at this hearing is what makes the settlement legally binding.
Preliminary Approval: The court's first sign-off on a proposed settlement, which authorizes sending notice to class members and opens the claims period. It is not the final word — the judge will hold a fairness hearing later before issuing final approval. Think of it as the green light to start the process, not the finish line.
Distribution: The process of sending payments to class members after final approval and any appeals are resolved. The settlement administrator calculates each valid claimant's share, then issues checks, ACH transfers, PayPal payments, or prepaid cards depending on the options available. Distribution timelines vary widely — some cases settle quickly; others take years.
Supplemental Distribution: A second round of payments sent after the initial distribution, typically funded by uncashed checks or leftover money that wasn't claimed. Courts sometimes order a supplemental distribution rather than letting leftover funds revert to the defendant or go to cy-pres. Not every settlement has one.
Class Representative: A class member — often called the named plaintiff or lead plaintiff — who steps forward to represent the entire class in the litigation. They participate in discovery and negotiations but are bound by the same settlement terms as everyone else. Courts sometimes approve a small additional payment called an incentive award to compensate them for their extra time and effort.
Subclass: A distinct group within the broader class that shares a more specific set of circumstances — for example, California residents or people who bought a particular product variant. Subclasses often have their own claim forms, eligibility rules, or payment tiers. If a settlement has subclasses, you'll need to confirm which one applies to you before filing.
Named Defendant: The company or individual specifically identified in the lawsuit as the party accused of wrongdoing. Settling with the named defendant and releasing your claims against them is the core trade in a class-action settlement. There may be multiple named defendants, each of whom may settle separately or together.
Attorneys' Fees: The portion of the settlement fund paid to class counsel for their work on the case. In most class actions, the court must approve the fee request, and class members have the right to object to fees they consider excessive. Fees are taken from the gross settlement fund before the net amount available to claimants is calculated.
Claims Administration Fees: The costs charged by the settlement administrator — the company hired to process claim forms, verify eligibility, and distribute payments. Like attorneys' fees, these come out of the gross settlement fund. They're separate from attorneys' fees and are disclosed in the settlement agreement.
Class Notice: The official communication sent to potential class members informing them of the settlement, their rights, and the deadlines to file a claim, opt out, or object. Notices may arrive by email, postcard, publication in a newspaper, or as a website posting. Reading the full notice — not just a summary — is the best way to understand exactly what you're agreeing to.
Claim Form: The document (paper or online) you submit to the settlement administrator to request your share of the settlement. It typically asks you to confirm your identity, describe your purchase or loss, and select a payment method. Submitting an incomplete or inaccurate form may result in your claim being marked deficient or denied.
Deficient Claim: A claim form the administrator cannot process as submitted because required information is missing, documentation is insufficient, or a response is inconsistent. Administrators typically send a deficiency notice giving you a window to cure the problem; if you don't respond in time, your claim may be rejected. Always watch your email or mail for follow-up notices after you file.
Automatic Payment / No Claim Required: Some settlements pay eligible class members automatically — no form to fill out — because the defendant already has records identifying who qualifies. You'll still receive a notice, and you still have the right to opt out, but you don't need to take any action to receive a payment. Check the settlement notice carefully to confirm whether this applies to you.
Escheatment / Unclaimed Funds: When a settlement check goes uncashed — or a digital payment goes uncollected — for too long, that money may be turned over to the state government under unclaimed-property laws, a process called escheatment. You can sometimes reclaim the funds later through your state's unclaimed-property program, but it's simpler to cash or deposit payments promptly. Not all settlements escheat; some redirect unclaimed funds to cy-pres instead.
Stale-Dated Check / Reissue: Settlement checks typically have a void date printed on them — often 90 to 180 days from issuance. If you miss the void date, the check is considered stale and your bank will likely refuse it. Most administrators allow you to request a reissue within a limited window; contact the settlement administrator promptly if this happens to you.
Digital Payment Election: Many settlements now let claimants choose to receive their payment via PayPal, Venmo, Zelle, virtual prepaid card, or ACH direct deposit instead of a paper check. Digital elections are optional and must be selected on your claim form or through the settlement website. Choosing a digital option can speed up delivery significantly, but the available choices vary by case.
Minimum Payment / Floor: A set baseline payout written into some settlement agreements so that every valid claimant receives at least a set dollar amount regardless of how many people file. Floors protect claimants in high-participation cases where pro-rata math might otherwise yield very small checks. If the fund runs short, minimums are sometimes scaled back proportionally — the settlement notice will explain the rules.
1099 / Taxable Settlement Payment: Settlement payments are not automatically tax-free. Payments compensating you for physical injury are typically excluded from income, but payments for economic losses, data-privacy claims, or statutory damages may be taxable and can trigger a 1099 form from the administrator. Tax treatment depends on your individual situation and the nature of the claims settled — reviewing the settlement notice or consulting a tax professional is advisable if you receive a large payment.
Multidistrict Litigation (MDL): A federal procedure that consolidates related lawsuits filed in different districts before a single judge for pretrial proceedings, including settlement negotiations. MDLs are common in product-liability, data-breach, and consumer-fraud cases with plaintiffs nationwide. Settling an MDL claim typically resolves your claims in all of the consolidated cases at once.
Common Fund: A legal doctrine that allows class counsel to receive fees from the settlement fund itself — paid by all class members proportionally — rather than charging each plaintiff individually. It's the standard fee structure in most consumer class actions, and it means claimants don't write a separate check to their lawyers; the fee simply reduces the net amount available for distribution.

Class action settlement glossary.

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