Class Action

While our primary function is to ensure that your settlement award is executed exactly as agreed and approved by the Court, our involvement can begin at any stage of the settlement process. We can help calculate economic damages, analyze the tax impact of a proposed settlement structure, and assist in the segregation of class members to proper classes.

HBS Class Action Administration is a full-service administration firm. Our data management and research team will locate, document, and track changes to class members’ addresses. Our tax professionals will consult with your legal team to determine the taxability and proper reporting of any settlement or award. Our customer service representatives will remain available to serve your class members years after the settlement fund is closed. Our technical knowledge, integrity, response time, and absolute commitment to service will simply astonish you.

The proper administration of a class action settlement is highly complex. This complexity has led HBS to develop and pioneer an internal administration system that divides each administration into three distinct stages: The Pre- Disbursement Period, The Disbursement Period, and the Post-Disbursement Period.

Pre-Disbursement: The pre-disbursement period encompasses all activities leading to the disbursement of settlement funds. This includes; managing member data, calculating damages, segregating members into classes and/or sub-classes, contacting class members, address verification, conducting address searches, mailing and publishing legal notices, maintaining and updating searchable databases, creating security protocol, determining potential tax impact of settlement on class members, calculate employer taxes, establishing the qualified settlement fund (QSF), importing data into appropriate accounting software, obtaining any federal, state, and local licensing, etc.

Disbursement Period: The disbursement period includes all activities that occur from the moment checks are processed to the closing of the trust/QSF account. These activities include; remittance of employee/employer taxes, completion of employer tax filings, fielding and documenting member inquiries, addressing unique member situations, reconciling the trust/QSF account, maintaining documentation of all un-negotiated checks, conducting additional address searches, creating detailed reports for plaintiff and defendant council, remitting unclaimed property to state authorities, and closing of the trust/QSF.

Post-Disbursement: The post-disbursement period can last over five years. It consists of all activities that occur after the closing of the trust/QSF account. This includes; creation of final reports, filing of necessary tax documents, distribution of 1099s and W2s to class members, preparation of tax return for the QSF, and fielding and documenting class member inquiries. The greatest challenge of the post- disbursement period, however, occurs 18-36 months after the QSF is closed. This is when IRS computers uncover mismatches between 1099s, W2s and class member tax returns. Depending on the nature and age of the law suit, a large percentage of members may receive penalty and adjustment notices. Helping class members address these issues requires special systems and an exceptional level of customer service.

Completed Class Action Settlements



# Members

Nature of Litigation

Long vs. Schewel




Osbourne vs. McDowell County




Ramey vs. BLI




Fondron vs. Resource Employment




Shingleton vs. ICT




Collis vs. Royce Hosiery




Sims vs. SCI

Notices Only



Silveous vs. AFAC Inc




Chambers vs. Aerotek




Nolan vs. Reliant Equity




Download our brochure for more about HBS Class Action Administration Services