What is Settlement Fund (gross Settlement)?

Class action glossary term

Short Definition

The total amount the defendant agrees to pay as part of a settlement, before deductions like fees and administration.

What It Means

The settlement fund (sometimes called the gross settlement amount) is the top-line number. From that amount, the court may approve deductions such as attorneys’ fees and expenses, settlement administration costs, taxes (in some cases), and service awards. What’s left is the net amount available for class benefits.

Example

Example: A settlement announces “$5 million,” but the net fund for payments is smaller after approved deductions.

Why It Matters

Big headline numbers can be misleading unless you understand what comes out of the fund.

Attorneys’ fees

Service award (incentive award)

Primary Source

U.S. Supreme Court (Boeing Co. v. Van Gemert) / Common fund doctrine

Transparency

This class action term is explained for general informational purposes only and does not constitute legal advice. Definitions and applications may vary by jurisdiction and case context.

To see how this term is applied in real cases, explore current and past class action settlements.