Six Steps to Ensure Class Member Payout Success

Kroll recognizes that successful administration does not end with payment delivery—it includes making sure delivery translates into access and usage. In short, the goal is to get settlement dollars into the hands of class members. Drawing on decades of experience, we recommend consideration of these six effective practices to promote successful distributions and bolster the integrity of the process.

1. Check Cashing Timelines and Reminders

Checks remain a common method of payment in class settlements. It is common for settlement checks to go uncashed, particularly at lower dollar values, ultimately squandering the class member’s effort to file the claim in the first place. Thoughtful counsel have traditionally built mechanisms into the process for reminding class members to cash their checks. We recommend built-in reminder protocols, including targeted email reminders sent 10 days prior to the stale date to encourage check cashing, postal mail notices and phone outreach (particularly for high-value checks). These efforts can be further effective if the timeframe for cashing checks allows for additional reminder efforts deployed strategically in a planned fashion.

• In multiple recent settlements, these efforts have resulted in significant increases in check cashing rates. Where these measures are deployed, as many as 20% more checks are ultimately cashed.
• Outbound calling efforts, particularly in coordination with counsel, are highly effective. An outbound call can direct a class member to a website for information, to reach out for assistance or otherwise remind class members of a check expiration date before it happens. In a plan of allocation where certain class members may receive large payments, this step is indispensable.

2. Returned and Undeliverable Check Handling

Returned checks can signal a bad address or an unengaged claimant. Upon direction, Kroll implements robust tracking and follow-up workflows to identify and reissue returned checks, conduct address updates via skip tracing and USPS forwarding and log all efforts for court reporting and audit trails.

3. Live Operators and Customer Support

Ensuring claimants have access to a live person during the distribution phase—rather than just a website, chatbot or FAQs—can be the difference between a redeemed and unredeemed payment. Kroll staffs dedicated support lines with trained operators who answer questions about payment methods and status, troubleshoot issues with prepaid cards or uncashed checks and offer alternate formats or replacement options when possible.

4. Residual Distributions

In line with evolving judicial expectations, we recommend residual distributions to eligible class members until it is no longer administratively feasible. Indeed, many courts now insist on this practice, which not only increases total claimant recovery but enhances perceptions of fairness and accountability. Residual distributions serve claimants and ensure responsible handling of settlement funds.

5. Digital / Push Payment Reminders

Digital or non-traditional settlement payments, whether selected or pushed to class members directly, can be effective methods of delivering settlement relief, particularly to the unbanked—but also risk going unused or unclaimed. While the administrator may not have direct visibility into payment redemption for some types of payments, post-distribution email nudges encouraging redemption, accompanied with clear instructions and claimant support, help maximize the use of these settlement awards.

6. Fallback to Paper Checks for Failed E-Payments

Consider including language in the settlement agreement to ensure that failed electronic payments automatically trigger a paper check mailing. This fallback mechanism prevents digital distribution failures from quietly becoming unclaimed funds.

These are just some of the effective measures available to enhance claimant engagement and ensure successful distribution outcomes. Achieving maximum payouts in class settlements is a collaborative effort, and Kroll is committed to working alongside counsel to design a program that balances cost-efficiency with meaningful engagement. Together, we can develop strategies that align with both judicial expectations and claimant needs.