This bill, known as "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 could potentially discourage class action litigation due to the restrictions on attorneys' fees, which may lead to a decrease in the frequency of such cases. The bill is expected to increase revenue to the General Fund by an indeterminable amount, while also reducing expenditures related to attorney fees in litigation involving the state. The effective date for these changes is set for January 1, 2026.

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