The tool enables individuals to estimate potential compensation received from a legal agreement involving TaxAct, divided among the participating class members. It functions by taking the total settlement fund, subtracting legal fees and administrative costs, and then dividing the remaining amount by the number of eligible claimants. The resulting figure represents an approximate individual payout, assuming equal distribution. For example, a $10 million settlement, with $3 million in fees and 10,000 claimants, would yield a gross estimated payout of $700 per person, before any individual adjustments.
Understanding potential settlement payouts is crucial for class action participants. It provides clarity regarding anticipated compensation, helping individuals make informed decisions about participating in the settlement. It can also reveal the adequacy of the proposed settlement concerning the alleged damages. Historically, calculating these payouts was a manual and time-consuming process, leading to inaccuracies and delays in informing class members. The emergence of automated calculators streamlines this process, promoting transparency and efficiency in settlement distribution.
