What Percentage of Class Action Money Actually Goes to Lawyers?
Updated June 16, 2026 · 4 min read · By Class Action Buddy
Short answer: Class action attorneys typically receive 25-33% of the gross settlement fund ("the common fund"). The exact percentage is approved by the judge at the fairness hearing, with 30% being the most common figure. Add another 2-5% for administrator costs (notice mailings, claim processing) and 1-3% for expenses (expert witnesses, court fees).
Net to class: roughly 60-70% of the gross fund reaches actual class members, divided across however many people file. For mega-cases over $100M, courts often approve smaller fee percentages (15-20%) because the dollar amounts get unreasonable at 30%.
Where the money actually goes (typical $50M settlement)
| Allocation | % of gross | $50M example |
|---|---|---|
| Attorney fees | 25-33% | $15M (at 30%) |
| Litigation expenses | 1-3% | $1M |
| Administrator costs (notice, claim processing) | 2-5% | $1.5M |
| Lead plaintiff incentive awards | 0.05-0.2% | $50K (5 plaintiffs × $10K each) |
| Net to class members | 60-70% | ~$32.5M |
How courts decide the fee percentage
Federal courts use two methods to evaluate class-counsel fees:
- Percentage-of-the-fund (POF). Most common in the Ninth, Eleventh, and DC Circuits. Judge approves a percentage of the gross settlement, with 30% as the typical benchmark.
- Lodestar. Counsel's actual hours × reasonable hourly rate, then multiplied by a 1-4× "multiplier" based on case difficulty. The Second and Seventh Circuits often cross-check POF awards against lodestar.
Judges almost always adjust downward from what counsel requests. The 30%-of-fund norm only applies when no one objects; even small objector pressure routinely brings fees down to 22-25%.
Why these fees aren't "too high"
- Contingency risk. Class counsel works for 2-5 years upfront with zero pay; if they lose, they get nothing. The 30% reflects that risk.
- Expense fronting. Counsel pays for expert witnesses, depositions, and court filings out of pocket — often hundreds of thousands of dollars.
- The alternative is nothing. If small consumer claims didn't have class-action mechanisms, no individual lawsuit would be economically viable — so no recovery for anyone.
- Public oversight. The judge reviews all fee requests at the fairness hearing, and any class member can object.
Frequently Asked Questions
Do attorney fees come out of my individual payout?
Yes, indirectly. The fees come off the gross fund before per-person distribution. So if attorneys take 30%, the remaining 70% is what gets split among class members. Your per-person amount already accounts for this.
Can I object to the attorney fees?
Yes. Class members can file written objections before the fairness hearing arguing the fees are excessive. Successful objections can reduce attorney fees by 5-15 percentage points, increasing the net to class members.
Is the percentage different for mega-cases?
Yes. For settlements over $100M, courts often apply declining percentages — 25% on the first $100M, 20% on the next $100M, 15% above that. The reasoning: counsel doesn't put in proportionally more work for each additional dollar recovered.
Do attorneys ever get paid more than 33%?
Rarely, and only in cases with extraordinary complexity, novel legal theories, or high risk of loss. Most courts treat 33% as a soft ceiling and any request above that requires significant justification.
Never miss another deadline
Class Action Buddy notifies you when settlements you qualify for open — and auto-fills the claim form in 60 seconds.
App Store Google Play