H. Distribution of Proceeds after Judgment

• Library: South Carolina Damages (SCBar) (2009 Ed.)

H. Distribution of Proceeds after Judgment

Distribution of any funds obtained for the benefit of the class must be made pursuant to court order. In a voluntary class settlement pursuant to Rule 23(b)(3), a formula for calculating the amount due to each class member and an administrative procedure for disbursing funds may be developed and described in the class action notice.²⁷ Thus, in a settlement class, the absent class members have the benefit of knowing both the amount and method by which they will receive compensation.

In the litigation context, if damages to individual class members can be calculated by simple mathematical means, the court may order that payment be made to class members by utilizing such a formula.²⁸ For instance, if a fraud involved the sale of stock, payment could be ordered by a formula utilizing the number of shares and price paid per share.

Littlefield v. South...