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LegalText 28 U.S.C. § 1712 Coupon settlements us united_states_code code_section 28 JUDICIARY AND JUDICIAL PROCEDURE 114 CLASS ACTIONS 1712 28 U.S.C. § 1712 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc28@119-100.zip /us/usc/t28/s1712 data/legal/raw/us/code/title-28/usc28.xml e0314b387c00cdd7de580ea39b892fa82641c0b586d0ecd5134a74242de6a75c 3390f867a2c02f5d0c496269da780795fe19663a090a3040c64a9ee0a541cdcf dc7e4d1707b2ab9c1b036c22b24e095fcc41252688cceb6bef6e0b9617967ce2 2026-07-04 official
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28 U.S.C. § 1712 - Coupon settlements

Text

(a) Contingent Fees in Coupon Settlements.— If a proposed settlement in a class action provides for a recovery of coupons to a class member, the portion of any attorneys fee award to class counsel that is attributable to the award of the coupons shall be based on the value to class members of the coupons that are redeemed.

(b) Other Attorneys Fee Awards in Coupon Settlements.— (1) In general.— If a proposed settlement in a class action provides for a recovery of coupons to class members, and a portion of the recovery of the coupons is not used to determine the attorneys fee to be paid to class counsel, any attorneys fee award shall be based upon the amount of time class counsel reasonably expended working on the action.

(2) Court approval.— Any attorneys fee under this subsection shall be subject to approval by the court and shall include an appropriate attorneys fee, if any, for obtaining equitable relief, including an injunction, if applicable. Nothing in this subsection shall be construed to prohibit application of a lodestar with a multiplier method of determining attorneys fees.

(c) Attorneys Fee Awards Calculated on a Mixed Basis in Coupon Settlements.— If a proposed settlement in a class action provides for an award of coupons to class members and also provides for equitable relief, including injunctive relief—

(1) that portion of the attorneys fee to be paid to class counsel that is based upon a portion of the recovery of the coupons shall be calculated in accordance with subsection (a); and

(2) that portion of the attorneys fee to be paid to class counsel that is not based upon a portion of the recovery of the coupons shall be calculated in accordance with subsection (b).

(d) Settlement Valuation Expertise.— In a class action involving the awarding of coupons, the court may, in its discretion upon the motion of a party, receive expert testimony from a witness qualified to provide information on the actual value to the class members of the coupons that are redeemed.

(e) Judicial Scrutiny of Coupon Settlements.— In a proposed settlement under which class members would be awarded coupons, the court may approve the proposed settlement only after a hearing to determine whether, and making a written finding that, the settlement is fair, reasonable, and adequate for class members. The court, in its discretion, may also require that a proposed settlement agreement provide for the distribution of a portion of the value of unclaimed coupons to 1 or more charitable or governmental organizations, as agreed to by the parties. The distribution and redemption of any proceeds under this subsection shall not be used to calculate attorneys fees under this section.

(Added Pub. L. 1092, § 3(a), Feb. 18, 2005, 119 Stat. 6.)

Notes

Statutory Notes and Related Subsidiaries

Effective DateSection applicable to any civil action commenced on or after Feb. 18, 2005, see section 9 of Pub. L. 1092, set out as an Effective Date of 2005 Amendment note under section 1332 of this title.