Cy pres
Cy pres is a way of giving settlement money to a charity whose work relates to the case when paying individual class members is not practical.
Also called: cy près, cy pres award, cy pres distribution
Cy pres is a way of giving settlement money to a charity whose work relates to the case when paying individual class members is not practical.
What it means
Cy pres is a legal phrase meaning "as near as possible." In a class action, a cy pres award sends settlement money to a nonprofit whose work is close to the purpose of the lawsuit, when the money cannot reasonably be paid to class members.
It usually comes up in two situations. First, the class is so large and each person's loss so small that sending checks would cost more than they are worth. Second, money is left over after payments because checks went uncashed or claims were fewer than expected. A judge must approve the recipient, and the recipient should connect to the interests of the class. For example, a consumer privacy group could receive money from a privacy settlement.
Cy pres is controversial when it replaces payments to class members entirely. The U.S. Supreme Court once took up a settlement that paid its class nothing and sent most of the money to charities, then sent the case back on a technical question without deciding whether such deals are allowed.
What it means for you
Cy pres matters to you in two ways. In a pro rata settlement with leftover money, the notice may say whether leftovers go to class members in a second round, to a charity, or back to the company. A cy pres award means the remainder is not paid to you.
The notice or settlement agreement usually names the proposed recipients. If you think they have little to do with the lawsuit, or that class members should be paid instead, you can say so in an objection before the deadline.
Example
Say a settlement has $40,000 left after payments and a second round of checks. Splitting it among 80,000 claimants would give each person 50 cents, and mailing the checks would cost more than the money. Instead, the settlement says the leftover goes to a nonprofit that teaches online privacy skills, since the lawsuit was about a privacy practice. The judge approves the recipient as a close fit for the class's interests.
FAQ
It means leftover money goes to a charity or nonprofit whose work is as close as possible to the issues in the case, instead of to class members or the company. The judge has to approve the recipient.
Sometimes that is done as a second distribution. When the leftover is too small per person, or sending it would cost more than it is worth, a court may approve cy pres instead.
Related terms
- Managing Class Action Litigation: A Pocket Guide for Judges, 3d ed. (Federal Judicial Center, 2010)
- Frank v. Gaos, No. 17-961 (U.S. Mar. 20, 2019) (Cornell LII)
- Manual for Complex Litigation, Fourth, section 21.662 (Federal Judicial Center)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.