Using a Qualified Settlement Fund for COVID-19 Class Action Settlements
From price gouging and false claims to negligence and employment cases, law firms around the country are gearing up for a flood of COVID-19 lawsuits. With most in-person court proceedings at a standstill and law firms still working remotely, delays are inevitable.
As your law firm begins planning for multi-claimant lawsuits, consider using a qualified settlement fund (“QSF” or 468B Trust) to facilitate more efficient claims resolution.
Qualified Settlement Fund Benefits for Claimants
A key problem with many multi-claimant settlements occurs when individual claimants’ needs aren’t addressed, potentially creating more work for the plaintiff law firm. The operational capacity of most law firms doesn’t permit an individualized approach.
A QSF avoids constructive receipt while allowing time for proper allocation and issue resolution. Claimants without concerns can receive their allocations without having to wait for claimants who need to consider outstanding liens and subrogation claims, needs-based government benefits (e.g., SSI, Medicaid, etc.), and probate or bankruptcy matters.
A QSF also allows time for your settlement consultant to educate individual claimants on their settlement options, including income tax-free and income tax-deferred structured settlements, special needs trusts, and more.
Qualified Settlement Fund Benefits for Defendants
Defendants also find qualified settlement funds to be attractive tools for claims resolution. Rather than waiting for liens to be resolved, documentation to be completed, and individual payments to be disbursed, the defendant can fund the QSF, then take the tax deduction and the release from liability.
Sage Partners with Leading QSF Administration Firms
Sage’s qualified settlement fund partners have served as court-appointed administrators for many of the nation’s most significant mass tort and class action lawsuits. Their proprietary technology streamlines claims administration, taking the burden off the law firms and ensuring timely, accurate disbursements.
Resolving COVID-19 Class Action Lawsuits
For more information about effectively resolving your firm’s class action and other multi-claimant lawsuits, contact Sage Settlement Consulting today.