How Do Class Action Lawyers Get Paid?
By Timo Bakker · July 3, 2026 · 5 min read
Class action lawyers work on contingency. The court approves their fee out of the settlement fund, then divides the rest among class members. Here is exactly how it works and how it affects your payout.
Contingency, not hourly
You never pay a class action attorney out of pocket. The plaintiffs' law firm invests time and money upfront to litigate the case, then gets paid a percentage of the eventual settlement fund. If the case loses (rare, since most settle), the firm eats the cost.
Typical fee percentages
Federal court class action attorney fees typically range from 20-33% of the settlement fund, subject to court approval. The specific percentage depends on:
- Case complexity (data breach = complex, straightforward consumer product = simpler).
- Duration of litigation (5-year cases get higher fees than 2-year cases).
- Total settlement value (larger settlements often get lower percentages).
- Risk profile (novel legal theories = higher fees).
Court approval
Every class action attorney fee has to be approved by the judge overseeing the settlement. Objectors (rare) can challenge the fee at the final approval hearing. In practice, judges usually approve the fee as long as it is within the reasonable range and the settlement itself is fair.
How this affects your payout
Attorney fees come out of the total settlement fund before distribution to class members. So a $10M settlement with 30% attorney fees leaves $7M for class member payouts, plus administrative costs (another 5-10% typically).
Individual per-claimant payouts depend on how many valid claims are filed. If 100,000 people file, each gets ~$70. If 10,000 file, each gets ~$700.
Named plaintiffs get a bonus
The 1-3 named plaintiffs who fronted the case get an additional service award ($1,000-25,000) on top of their regular class member payout. This is court-approved and standard.