Unclaimed Class-Action Funds Statistics 2025: 50+ Data Points, Trends & In-Depth Analysis

Comprehensive data compiled from multiple research sources on settlement claim rates, administrative costs, and fund distribution patterns

Executive Summary

Bottom Line Up Front: Despite record-breaking class action settlements totaling $42 billion in 2024, the vast majority of these funds remain unclaimed by entitled class members, with claim rates averaging just 9% or less across most consumer class actions. This creates a massive pool of unclaimed funds—estimated in the billions—that gets redistributed through cy pres donations, state escheatment, or administrative processes rather than reaching the intended beneficiaries.

1. Settlement Volume and Financial Impact

1. $42 billion in total class action settlements were reached in 2024, making it the third-highest annual total in two decades. This represents a slight decrease from the unprecedented highs of 2022 ($66 billion) and 2023 ($51.4 billion), but still demonstrates the massive scale of financial remedies available to consumers. The three-year period from 2022-2024 has seen nearly $160 billion redistributed from corporations to class members, marking the most extensive wealth transfer in U.S. legal history outside of tobacco settlements. Source: Milberg LLP Class Action Report

2. 10 billion-dollar settlements were reached in 2024, surpassing the 9 billion-dollar settlements in 2023 and falling just short of the record 15 billion-dollar settlements in 2022. These mega-settlements represent the core of unclaimed fund challenges, as larger settlements often have proportionally lower claim rates. The concentration of settlement value in these massive cases means that even small percentage decreases in claim rates can result in hundreds of millions of unclaimed dollars. Source: Duane Morris Class Action Defense Blog

3. 34 settlements of $1 billion or more have been reached in just three years (2022-2024), creating an unprecedented concentration of large settlement funds. This represents the most extensive run of billion-dollar class action resolutions in U.S. court system history. Large settlements face unique administrative challenges, as the complexity of identifying and notifying potentially millions of class members creates significant barriers to fund distribution. Source: Duane Morris Class Action Defense Blog

4. $21.77 billion in settlements have been reached in the first half of 2025, putting the current year on pace to match or exceed previous record-setting years. This sustained high level of settlement activity ensures that unclaimed fund management will remain a critical issue for courts, administrators, and policymakers. The consistency of these high settlement values indicates that unclaimed fund issues are not anomalous but represent a systemic challenge in the class action system. Source: Lexology Class Action Review

5. $4.1 billion in securities class action settlements were reached in 2024, representing the highest annual figure in securities class action history excluding cases with individual settlements exceeding $1 billion. Securities cases present particular challenges for fund distribution due to the difficulty of identifying and locating shareholders, especially those who held stocks through intermediaries. The scale of these settlements means that even modest unclaimed percentages represent tens of millions in undistributed funds. Source: Woodruff Sawyer Securities Report

6. $560 million was recovered in the three largest data breach securities settlements of 2024, establishing new records for this rapidly growing category of litigation. Data breach settlements face unique claiming challenges because affected individuals often don't realize they were impacted by breaches or don't understand the value of pursuing small individual payments. The technical nature of data breach harm makes it difficult for class members to assess whether they should participate in settlements. Source: Harvard Corporate Governance Blog

2. Consumer Claim Rates and Participation Statistics

7. 9% or less is the average claim rate in consumer class actions with direct notice, according to the most comprehensive Federal Trade Commission study of its kind examining 149 consumer class actions from seven claims administrators. This statistic represents the fundamental challenge of class action fund distribution: even when class members receive direct notification about settlements, over 90% fail to submit claims. The study represents the largest empirical analysis of claim rates ever conducted. Source: Kroll Settlement Administration

8. Less than 1% is the typical claim rate for consumer class actions where class members receive notice only through media advertisements rather than direct mail. One claims administrator testified that for the "hundreds of consumer class actions" they handled with indirect notice, the claims rate was "almost always less than 1 percent." This dramatic difference highlights how notice method directly impacts fund distribution and suggests that billions in settlement funds go unclaimed in media-notice-only cases. Source: Judicature Claims-Made Settlements

9. 0.023% was the median claims rate disclosed by a major claims administrator for class actions using media advertisement notice. This extraordinarily low participation rate means that in a $100 million settlement with media-only notice, typically only $23,000 would be claimed by class members, leaving $99.977 million unclaimed. These statistics underscore why unclaimed fund distribution has become such a critical issue in class action administration. Source: Judicature Claims-Made Settlements

10. Less than 0.5% of plaintiffs received any relief from the Comcast settlement, despite the company agreeing to pay substantial amounts to resolve allegations about unexpected charges. This case has become emblematic of the unclaimed funds problem, where corporations pay settlements but consumers don't receive meaningful relief. The low participation rate meant that cable companies have not discontinued the practice of unexpected charges, with the average cable customer still paying $450 annually in unexpected fees. Source: California Law Review

11. Multiple notice rounds more than double claim rates compared to single communication attempts, according to FTC research analyzing settlement administration practices. Cases with multiple rounds of notice across multiple channels produced median claims rates more than double those with single communication attempts. This finding suggests that administrative investment in comprehensive notice campaigns could significantly reduce unclaimed fund pools, but also increases administrative costs. Source: Kroll Settlement Administration

12. Plain language notification has the highest correlation with increased claim rates among all factors examined by the FTC. The research found that when settlement notices use clear, jargon-free language at appropriate reading levels, class members are significantly more likely to understand their rights and submit claims. This finding suggests that many unclaimed funds result from communication barriers rather than class member disinterest, indicating that improved notice practices could reduce unclaimed fund problems. Source: Kroll Settlement Administration

3. Cy Pres Distribution and Alternative Fund Uses

13. $25 million is the estimated value of unaccounted-for cy pres distributions in federal securities class action settlements since 1996, according to groundbreaking research examining 373 settlements between 2010 and 2018. This research revealed that 57% of settlements lacked any evidence in the public record of cy pres recipient identity or court approval. At an average cy pres award of around $20,000 per case, the cumulative unaccounted funds represent a significant pool of money with unclear ultimate disposition. Source: Emory Law Journal Research

14. 57% of class action settlements examined lack any public evidence of cy pres recipient identity or court approval, representing a significant transparency gap in unclaimed fund distribution. This finding suggests that tens of millions of dollars in unclaimed settlement funds are being distributed to charitable organizations without adequate public oversight or documentation. The lack of transparency undermines confidence in the cy pres system and makes it difficult to assess whether funds are being used effectively. Source: Emory Law Journal Research

15. $956 million in attorneys' fees was awarded to plaintiffs' lawyers who secured two PFAS settlements worth more than $11 billion, highlighting how attorney compensation often exceeds claimed amounts in mega-settlements. This award, one of the largest in class action history, demonstrates the economic incentives that drive high-value settlements while potentially contributing to unclaimed fund problems when attorney fees are calculated on total settlement value rather than actual distributions to class members. Source: Duane Morris Class Action Defense Blog

16. $1.2 billion was generated by the Masonite class action settlement, one of the most successful claims-made settlements in history that paid to repair defective exterior hardboard siding on class members' homes. This case demonstrates that high participation rates are possible when settlements address clear, tangible harms that class members can easily identify. The success rate suggests that product defect cases may have inherently higher claim rates than financial or privacy-related settlements. Source: Judicature Claims-Made Settlements

17. Over $1 billion was distributed through the Polybutylene Pipe settlement, another highly successful claims-made settlement that paid to replace defective plumbing in homes nationwide. Like Masonite, this case achieved exceptional participation rates because the harm (defective pipes) was highly visible and the remedy (replacement cost reimbursement) was directly valuable to class members. These cases provide models for how settlement design can maximize claim rates and minimize unclaimed funds. Source: Judicature Claims-Made Settlements

18. $16 million in cy pres awards plus $6 million in defendant reversion was approved in a recent settlement, illustrating how unclaimed funds often get divided between charitable donations and returns to defendants. This 73%-27% split between cy pres and reversion represents a common pattern where the majority of unclaimed funds go to charity but significant amounts still return to the companies that originally caused the alleged harm, potentially undermining deterrent effects. Source: American Bar Association Class Action Guide

19. 1,488 data breach class actions were filed in 2024, representing the most data breach filings ever recorded and more than double the number filed just two years earlier. This represents a 1,265% increase over six years, cementing data breaches as one of the fastest-growing areas in class action law. The explosive growth in data breach litigation creates massive pools of potential claimants, but these cases often struggle with low claim rates due to the abstract nature of privacy harms. Source: Milberg LLP Class Action Report

20. More than 200 adtech-related class actions were filed in 2024, challenging companies' use of software like Meta Pixel or Google Analytics to collect user browsing behavior. These cases often allege violations of wiretap laws and privacy statutes, but face significant challenges in demonstrating concrete harms that motivate class member participation. The technical nature of adtech violations makes it difficult for consumers to understand their rights and the value of potential recoveries. Source: Milberg LLP Class Action Report

21. 250+ Video Privacy Protection Act (VPPA) claims were filed in 2024, more than doubling year-over-year and representing a significant subset of privacy litigation. VPPA cases typically offer statutory damages but face challenges with class member identification and participation. The law's focus on video viewing habits creates settlements where many class members may not realize they have claims or may be reluctant to participate due to privacy concerns about their viewing history. Source: Milberg LLP Class Action Report

22. $388.95 million represents the total of the top 5 data breach class action settlements in 2024, indicating substantial financial exposure for companies but also creating large pools of potentially unclaimed funds. Data breach settlements face unique challenges because affected individuals often don't suffer immediate financial losses, making it difficult to motivate claim submission. The delayed nature of identity theft and other data breach harms means many class members may not appreciate the value of participating in settlements. Source: Duane Morris Class Action Review

23. Up to $10,000 per person is available in the Rite Aid data breach settlement, representing one of the higher individual payouts in recent data breach cases. However, such payments typically require proof of actual losses related to the breach, which many class members cannot provide. Without proof, class members may receive much smaller "cash fund payments" that vary based on the total number of claims submitted, creating uncertainty about recovery amounts. Source: The Krazy Coupon Lady

24. 72.7% of businesses worldwide fell victim to ransomware attacks in 2023, according to survey data, coinciding with record numbers of data breaches that drive class action litigation. This high victimization rate suggests that data breach class actions will continue generating substantial settlement funds, but the ubiquity of breaches may also contribute to "breach fatigue" among consumers who become less likely to participate in individual settlements due to the frequency of incidents. Source: Harvard Corporate Governance Blog

5. Administrative Costs and Processing Efficiency

25. 75-90% of class members must be reached by notice programs to meet current court standards, but courts are increasingly looking at response rates in addition to reach metrics. This dual requirement creates significant administrative costs and complexity, as administrators must both achieve broad distribution and implement strategies to motivate actual claim submission. The emphasis on response rates reflects judicial recognition that reach alone doesn't ensure meaningful relief for class members. Source: Kroll Settlement Administration

26. $188 billion was spent globally on cybersecurity measures in 2023, with projections rising to $215 billion in 2024, yet data breaches continue increasing. This paradox highlights how even substantial corporate investment in data protection doesn't prevent the security incidents that drive class action litigation. The continued growth in both cybersecurity spending and data breach settlements suggests that unclaimed fund pools from privacy-related cases will remain substantial. Source: Harvard Corporate Governance Blog

27. Over $1 billion in ransoms was paid to cybercriminals in 2023, representing the financial impact of successful cyberattacks that often lead to class action litigation. The substantial ransom payments demonstrate both the value criminals place on stolen data and the financial pressure companies face from security incidents. These costs often factor into settlement calculations and may influence company willingness to settle cases rather than face prolonged litigation exposure. Source: Harvard Corporate Governance Blog

28. Low response rates to email notification confirm that postal mail remains the most effective method for class action notice, according to FTC research findings. This preference for traditional mail creates higher administrative costs but significantly improved participation rates. The effectiveness of postal mail notice has important implications for settlement administration budgets and may influence court decisions about required notice methods in cases with substantial settlement funds. Source: Kroll Settlement Administration

29. Claims processing requires orders of magnitude more time during periods of high claims volume, according to California's Unclaimed Property Division, which reports "significantly higher than expected claims volume" causing processing delays. This bottleneck effect can discourage participation in class action settlements when claim processing becomes slow and cumbersome. Administrative capacity constraints represent a hidden factor in unclaimed fund problems. Source: California State Controller's Office

30. Administrative costs vary significantly based on settlement complexity and claim requirements, with cases requiring extensive documentation having much higher per-claim processing costs. Complex claim forms and documentation requirements, while designed to prevent fraud, can create barriers that reduce participation and increase administrative expenses. The balance between fraud prevention and accessibility represents a key challenge in settlement administration. Source: Northern District of California Procedural Guidance

6. Geographic and Demographic Distribution Patterns

31. $190 million in unclaimed property was recovered by 30 states in a major interstate settlement with Delaware over MoneyGram official checks, demonstrating how unclaimed funds can accumulate across state boundaries. This settlement resolved disputes about which states should receive unclaimed property based on where financial instruments were purchased rather than where they were processed. The case highlights how unclaimed property laws can create complex jurisdictional issues that delay fund distribution to rightful owners. Source: Delaware State News

32. $4.49 billion was returned to rightful owners by state unclaimed property programs from July 1, 2023 to June 30, 2024, according to the National Association of Unclaimed Property Administrators (NAUPA). This substantial annual return demonstrates the scale of unclaimed property systems and their potential role in addressing class action fund distribution challenges. The success of state programs in reuniting people with unclaimed property suggests they could be effective channels for unclaimed class action funds. Source: National Association of Unclaimed Property Administrators

33. Over $20 million in unclaimed property was secured by Pennsylvania through the MoneyGram settlement, including $6.2 million remitted directly by MoneyGram and approximately $14 million transferred from Delaware. Pennsylvania's leadership in challenging Delaware's interpretation of unclaimed property laws demonstrates how proactive state advocacy can recover significant funds for residents. The case establishes important precedents for how unclaimed settlement funds should be allocated geographically. Source: Pennsylvania State Treasurer

34. 25+ other states joined the coalition challenging Delaware's unclaimed property practices, demonstrating broad interstate concern about proper fund distribution. The bipartisan coalition included states from diverse geographic regions and political backgrounds, indicating that unclaimed property recovery transcends partisan divisions. This level of cooperation suggests potential for coordinated state efforts to address unclaimed class action funds more effectively. Source: Texas Attorney General

35. 8 years of litigation were required to resolve the MoneyGram unclaimed property dispute, highlighting how jurisdictional conflicts can significantly delay fund distribution to rightful owners. The extended timeline demonstrates the costs and complexity of resolving interstate unclaimed property disputes through litigation. Similar delays could affect class action fund distribution if jurisdictional issues arise about where unclaimed settlement money should be allocated. Source: Delaware State News

36. Age-based claiming patterns show significant variations in unclaimed property recovery, with older adults often having larger unclaimed amounts but facing greater barriers to online claim submission. This demographic pattern has important implications for class action settlements, as older class members may be more likely to have substantial claims but less likely to navigate complex online claiming processes. Settlement administrators must balance digital efficiency with accessibility for older participants. Source: California State Controller's Office

7. Industry-Specific Settlement and Claim Patterns

37. Technology remains the most frequently sued industry in securities class actions, surpassing its 10-year average by six percentage points in 2024. Tech companies' high market valuations and complex business models create substantial settlement exposure, but their customer bases often include tech-savvy users who may be more likely to participate in class action settlements. However, the global and anonymous nature of many tech services can make customer identification and notification challenging. Source: Woodruff Sawyer Securities Report

38. 7% of securities class actions were tied to AI-related issues in 2024, up from 4% in 2023, representing emerging litigation trends that create new categories of potential claimants. AI-related settlements may face unique challenges because alleged harms often involve algorithmic bias or automated decision-making that affected individuals may not recognize. The technical complexity of AI systems can make it difficult for class members to understand their potential claims. Source: Woodruff Sawyer Securities Report

39. $13.73 billion represents the total of the top 5 products liability/mass tort settlements in 2024, indicating that defective product cases continue generating the largest individual settlement funds. Products liability cases often achieve higher claim rates than other settlement types because physical harm is more readily apparent to class members. However, the complexity of medical causation in mass tort cases can create barriers to participation for class members who aren't certain their conditions relate to the alleged product defects. Source: Duane Morris Class Action Review

40. Healthcare-related settlements face unique claiming challenges due to privacy concerns and the need for medical documentation. Many potential claimants are reluctant to submit health information to settlement administrators, even when substantial compensation is available. The sensitive nature of medical information creates additional barriers to claim submission that don't exist in other settlement categories, contributing to higher unclaimed fund rates in healthcare cases. Source: ClaimDepot Settlement Database

41. Financial services settlements often involve complex damage calculations based on account histories, fee structures, and individual transaction patterns that many class members don't understand. The complexity of financial harm calculations can discourage participation even when class members know they were affected by alleged misconduct. Banks and financial institutions often have comprehensive customer records that could facilitate claiming, but regulatory restrictions may limit their use in settlement administration. Source: ClassAction.org Settlement Database

42. Consumer product settlements typically require proof of purchase that many class members no longer possess, especially for settlements covering purchases made years earlier. The documentation requirements for product defect cases can exclude many eligible class members who discarded receipts or product packaging. Some settlements address this by offering smaller payments without proof of purchase, but this creates two-tier recovery systems that may not adequately compensate all injured class members. Source: The Krazy Coupon Lady

43. Online claim submission has become the dominant method for class action settlements, but digital divides can exclude older adults and low-income individuals who lack internet access or digital literacy. While online claiming reduces administrative costs and processing times, it may inadvertently create barriers for the most vulnerable class members. Settlement administrators must balance efficiency gains from digital processes with accessibility requirements for diverse class populations. Source: Northern District of California Procedural Guidance

44. Mobile-optimized claim forms show improved completion rates compared to desktop-only forms, reflecting changing technology usage patterns among potential claimants. The shift toward mobile claiming has important implications for settlement design, as forms must be simplified to work effectively on small screens. Mobile optimization can improve accessibility for younger class members while potentially creating challenges for older adults who may prefer traditional methods. Source: Kroll Settlement Administration

45. Automated claim processing systems reduce administrative costs but may create barriers for class members with unusual circumstances that don't fit standard claim categories. The efficiency of automated processing must be balanced against the need for human review of complex or atypical claims. Over-reliance on automation can exclude legitimate claimants whose situations don't match programmed parameters, contributing to unclaimed fund problems. Source: Northern District of California Procedural Guidance

46. Social media notification campaigns show mixed results in reaching class members, with effectiveness varying significantly by demographic group and platform. Younger demographics may be more responsive to social media outreach, while older class members often prefer traditional notice methods. The fragmented nature of social media platforms requires multi-platform strategies that increase administrative complexity and costs. Source: Kroll Settlement Administration

47. Rule 23 plain language requirements are mandatory for class action settlements, but the FTC research suggests current standards don't go far enough to ensure effective communication with class members. The gap between legal compliance and practical understanding contributes to low claim rates and unclaimed fund problems. Courts may need to adopt more stringent plain language standards to improve class member participation in settlements. Source: Kroll Settlement Administration

48. Four-day disclosure requirements for material cybersecurity incidents under new SEC rules create additional litigation exposure for public companies. The compressed timeline for incident disclosure may lead to incomplete initial disclosures that trigger securities litigation. These regulatory changes are likely to increase both the number and complexity of data breach class actions, creating new categories of unclaimed settlement funds. Source: Harvard Corporate Governance Blog

49. Cy pres distributions face increasing judicial scrutiny after recent appellate decisions requiring closer examination of charitable recipient selection and fund use. Courts are demanding better documentation of how cy pres awards serve class member interests rather than just supporting worthy causes. This heightened scrutiny may lead to more unclaimed funds being escheated to states or distributed through alternative mechanisms rather than cy pres donations. Source: Kroll Cy Pres Trends

50. Settlement approval standards increasingly emphasize actual distribution to class members rather than just total settlement amounts, reflecting judicial concern about meaningful relief. Courts are paying more attention to claim rates and administrative efficiency when evaluating settlement fairness. This trend may pressure settling parties to design more accessible claiming processes and invest more in notice and outreach efforts. Source: Northern District of California Procedural Guidance

51. $16 per person represents the proposed threshold below which individual distributions should not be made in class action settlements, with funds instead going to cy pres or other collective remedies. This proposal recognizes that administrative costs can exceed the value of very small individual payments. However, setting minimum distribution thresholds could exclude many class members from receiving any compensation while ensuring larger pools of unclaimed funds for alternative uses. Source: California Law Review

52. Automatic distribution through state unclaimed property databases represents a proposed solution to address low claim rates in class action settlements. This approach would treat unclaimed settlement funds like other unclaimed property, using existing state infrastructure to reunite class members with their money over time. The proposal could significantly reduce unclaimed fund problems while leveraging proven systems for property recovery. Source: California Law Review

53. PFAS "forever chemicals" litigation reached new heights in 2024, with the largest class action settlement totaling over $10 billion and generating unprecedented attorney fee awards. Environmental contamination cases like PFAS create unique claiming challenges because affected individuals may not know they were exposed or may not develop health effects for years. The long latency periods for environmental harm mean that substantial portions of these mega-settlements may remain unclaimed initially. Source: Milberg LLP Class Action Report

54. Artificial intelligence applications in settlement administration are emerging to improve class member identification and outreach efficiency. AI tools could potentially increase claim rates by better matching settlement opportunities with potential claimants, but implementation raises privacy and accuracy concerns. The technology could also help administrators identify patterns in unclaimed funds to improve future settlement design. Source: Northern District of California Procedural Guidance

Key Takeaways

  • The scale of unclaimed class action funds is massive, with billions of dollars annually going undistributed to intended beneficiaries despite record-breaking settlement amounts
  • Claim rates remain stubbornly low at 9% or less for most consumer class actions, creating systematic challenges that simple administrative improvements cannot fully solve
  • Digital transformation opportunities exist to improve claiming accessibility and efficiency, but must be balanced against digital divide concerns for vulnerable populations
  • Regulatory and judicial pressures are mounting for more effective fund distribution, potentially driving significant changes in settlement administration practices
  • State unclaimed property systems offer proven infrastructure that could be leveraged to address class action fund distribution challenges more effectively
  • Industry-specific solutions may be needed as different types of cases face unique claiming barriers that require tailored approaches rather than one-size-fits-all solutions

Read more

Claims Administration Redemption-Rate Benchmarks: 50+ Key Statistics Every Administrator Should Know (2024-2025)

Comprehensive data compiled from FTC research, industry studies, and current settlement analysis Executive Summary Bottom Line Up Front: Claims administration redemption rates vary dramatically by notice method, settlement type, and execution quality, with email notices achieving only 3% average redemption while optimized notice packets can reach 16%. The most successful

By Rob Heffernan

Digital Rails Beat Paper Checks for Settlement Payouts: 50+ Key Statistics with Detailed Analysis 2024-2025

Comprehensive data compiled from multiple research sources on digital payment transformation in settlement administration Executive Summary The transition from paper checks to digital payment rails for settlement payouts represents one of the most significant operational improvements available to legal and insurance administrators today. This comprehensive analysis of 50+ statistics reveals

By Rob Heffernan