Second distribution
A second distribution is an extra round of payments to class members when money is left in a settlement fund after the first payments go out.
Also called: secondary distribution, supplemental distribution, redistribution of leftover settlement money
A second distribution is an extra round of payments to class members when money is left in a settlement fund after the first payments go out.
What it means
A second distribution is a follow-up round of payments from a class action settlement fund. It happens when money is still left after the first payments go out. The leftovers usually come from uncashed checks, payments that were returned, or a fund that turned out larger than the total of the claims.
Whether you get one depends on the settlement agreement and the judge. Some courts prefer that leftover money go back to class members when that is practical. If the amount is too small to split, or the agreement says otherwise, the money may go elsewhere. That could be a charity (cy pres), the defendant (reversion) or a government fund.
Settlement agreements are supposed to plan for this. The notes to the federal class action rule say an agreement ordinarily should address what happens to unclaimed money. A second round is never promised, and many settlements do not have one.
What it means for you
Cash or accept your first payment promptly. In many settlements, people who never cashed a check are left out of any later round. Keep your address and payment details current with the administrator, and watch the settlement website for news after the first payments go out. Do not count on a second payment. It only happens if enough money is left and the agreement allows it. You never pay to receive settlement money, so ignore any message that asks for a fee to "release" extra funds.
Example
Say a settlement pays $50 to each of 20,000 people. After the check expiration date, 1,000 checks are uncashed, leaving $50,000. The agreement allows a second payment only if each person would get at least $5. Splitting $50,000 among the 19,000 people who cashed their checks comes to about $2.63 each, which is below the minimum. The money goes to the charity named in the agreement instead.
FAQ
Only if the settlement agreement allows one and enough money is left over to make it worthwhile. Many settlements never have a second round. If one happens, the settlement website or the administrator will announce it.
Often not. Second payments usually go to people who were already approved and paid in the first round. Check the settlement website for that case, because each agreement sets its own rules.
Related terms
- Federal Rule of Civil Procedure 23 and committee notes (Cornell LII)
- N.D. Cal., Procedural Guidance for Class Action Settlements
- FTC, Refund Programs: Frequently Asked Questions
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.