This bill, titled "The Class Action Settlement and Consent Decree Reform Act," introduces significant changes to the handling of funds in class action lawsuits. It mandates that any money from a class action judgment that cannot be distributed to class members must be escheated to the state general fund, explicitly prohibiting the application of the cy pres doctrine or any other means to redirect these funds. Additionally, the bill stipulates that no part of a class action settlement or judgment can be allocated to entities other than class members or used for attorneys' fees.

Furthermore, the bill limits attorneys' fees in class action lawsuits and lawsuits for consent decrees to the rates specified in the Laffey Matrix, unless a court decides otherwise. This change aims to control the costs associated with class action litigation. The fiscal impact of the bill is expected to result in an indeterminable increase in revenue for the General Fund, estimated to be between $10,000 and $100,000 per fiscal year, while also potentially decreasing expenditures related to attorney fees by a similar amount. However, the limitations on attorneys' fees may discourage class action litigation, which could affect the frequency of such cases and their associated settlements.

Statutes affected:
Introduced: 508:4-e
HB687 text: 508:4-e