Cy Pres: Turning Class Action Outcomes into Community Impact

The act of distributing unused cy pres funds to a legal aid organization brings a twofold measure of fairness and balance to an otherwise uneven system, both by returning critical resources to legal advocates who expand access to justice and by reinforcing the underlying purpose of the class action itself, which is to protect and vindicate the rights of those who were harmed.

“There’s just so much fraud happening. Especially to younger consumers, but even the elderly and that’s a huge focus, too," said Swift. "I know a lot of your constituents fall into certain age groups, and those are the saddest cases where someone’s life savings is gone because they got ripped off or defrauded. We see it as a fertile ground to help more people because folks–consumers who have issues we can help with; they find you first.”

Cy pres funds are especially important to legal aid organizations because they provide a lump sum, unrestricted gift that requires little time or resources from the organization to receive, yet can be used flexibly to meet the immediate needs of clients facing legal challenges today.

“That’s really the goal–making this individual whole or as whole as possible, making the rest of the class whole, but then also sending a message," he said. "Class actions are huge and there’s a lot of risk of time and money spent, but it really is the best way to make and affect change. A cy pres is such an important part of it because it incentivizes organizations like yours to keep up the good fight.”