Claims rate
The claims rate is the share of eligible class members who file a claim. It is usually low, which affects how much each person gets.
Also called: claim rate, participation rate
The claims rate is the share of eligible class members who file a claim. It is usually low, which affects how much each person gets.
What it means
The claims rate is the percentage of class members who file a claim. If a notice reaches 100,000 people and 5,000 file, the claims rate is 5 percent. Researchers often calculate it as claims filed divided by the number of people who received notice.
It is usually low. A 2019 Federal Trade Commission staff study of 149 consumer class action settlements found overall claims rates under 10 percent. In the settlements that required a claim, the median rate was 9 percent and the weighted average was 4 percent. Rates varied with how people were told. Settlements that mailed a notice packet with a claim form averaged about 10 percent. Postcards averaged about 6 percent and emailed notices about 3 percent.
Courts pay attention. The notes to the federal class action rule say the information given to the judge may include the expected rate of claims. At least one federal court's guidance asks lawyers to estimate it up front and report the actual number later.
What it means for you
A low claims rate is normal, not a warning sign. It also means that if you file a valid claim, you are in a small group that gets paid. In a pro rata settlement, fewer claims can mean bigger individual shares, up to any cap. In a claims-made settlement, the defendant may pay only for claims filed, so the headline number can be far above what the class receives. The FTC study found administrators approved about 86 percent of claims filed, so a complete claim filed on time is worth the few minutes.
Example
Say a notice reaches 400,000 people, and $1.2 million is left for claimants after fees and costs. If 20,000 file valid claims, a 5 percent claims rate, a pro rata split pays about $60 each. If 80,000 file, a 20 percent rate, the same money pays about $15 each. A higher claims rate shrinks every share.
FAQ
Usually well under 10 percent. A 2019 FTC staff study of 149 consumer class action settlements found overall claims rates under 10 percent, with a median of about 9 percent among settlements that required a claim. Rates were higher when people got a mailed packet with a claim form.
No. Low claims rates are common in real settlements. Whether a settlement is real depends on the court order and the administrator behind it, not on how many people claim.
Related terms
- FTC staff report, Consumers and Class Actions: A Retrospective and Analysis of Settlement Campaigns (September 2019)
- N.D. Cal., Procedural Guidance for Class Action Settlements
- Federal Rule of Civil Procedure 23 and committee notes (Cornell LII)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.