This bill, known as "The Class Action Settlement and Consent Decree Reform Act," introduces significant changes to the handling of undistributed funds in class action lawsuits. Specifically, 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. The bill explicitly prohibits the application of the cy pres doctrine or any other modifications to the judgment that would allow for the diversion of these funds. Additionally, it stipulates that no part of a class action settlement or judgment can be allocated to entities other than class members or used to pay attorneys' fees.

Furthermore, the bill imposes limitations on attorneys' fees in class action lawsuits and lawsuits seeking consent decrees, capping them at rates specified in the Laffey Matrix unless a court decides otherwise. This could potentially discourage class action litigation due to the reduced financial incentives for attorneys. The fiscal impact of the bill is projected to result in an indeterminable increase in revenue for the General Fund, estimated between $10,000 to $100,000 per fiscal year, while also leading to a decrease in expenditures related to attorney fees in state litigation. The bill is set to take effect on January 1, 2026.

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