Bill > H1290

This bill proposes to amend Chapter 200A of the General Laws by inserting a new section, 16A, which defines terms related to class action lawsuits and outlines how unclaimed funds, known as "residual funds," should be handled. A "class action" is defined as a civil lawsuit subject to Rule 23 of the Massachusetts Rules of Civil Procedure, which allows for a group of people with similar claims to sue together, and also includes "de facto class actions" that function similarly even if not formally certified. "Residual funds" are any money or property left over in a "common fund" (a pool of money created for the benefit of the class) after all approved payments to "class members" (individuals in the class) and for attorney fees and costs have been made. The bill mandates that before a final judgment or settlement is approved, the court must determine the total amount owed to class members and set a date for reporting payments. After this report, if there are any residual funds remaining, the court will generally direct the defendant to pay these unclaimed funds to the treasurer of the Commonwealth for deposit into the General Fund, effectively treating them as abandoned property that "escheat" (transfers ownership) to the Commonwealth. The Attorney General will be responsible for investigating any violations of this section and can file lawsuits to recover funds owed to the Commonwealth.