Can You Sell or Transfer a Class Action Claim?
For most consumer settlements, the claim belongs to the class member and can't be handed off. Large business and securities claims are different, and that's where claim buyers operate.
For most consumer class action settlements, you can't practically sell or transfer your claim. The claim form requires the class member to attest to their own purchases or experience, and many settlements prohibit assignments or only pay the person who filed. Larger business and securities claims are different: a market of claim buyers exists for them, and transfers can happen if the settlement and the law allow it.
Why consumer claims are hard to transfer
- ✓Personal attestations. Most claim forms ask you to swear, under penalty of perjury, that you bought the product or were affected. Someone else can't make that statement for you.
- ✓Settlement terms. Many settlement agreements say claims can't be assigned, or that the administrator will pay only the class member.
- ✓Small amounts. Typical consumer payments are too small for any legitimate buyer to bother with.
- ✓Fraud controls. Administrators flag claims where the payee differs from the class member. See how administrators prevent fraud.
Where claim trading does happen
Businesses with large antitrust claims, and institutions with securities claims, sometimes sell their rights to a recovery for an upfront payment. The buyer takes on the risk of a smaller or delayed payout in exchange for a discount. These deals involve written assignment agreements, proof of the underlying purchases, and often notice to the administrator. Whether a specific settlement recognizes the assignment depends on its terms.
A buyer pays less than they expect to collect, because they're taking on risk and waiting. If you're considering an offer for a business claim, compare it with what the notice suggests you'd receive, and have a lawyer review the agreement.
Claims for someone who has died
Claims don't simply disappear when a class member dies. An estate representative can often file or receive a payment, which is a form of transfer the law recognizes. The administrator will tell you what documents it needs. See filing for a deceased relative.
Family members and joint accounts
You can't usually give your claim to a spouse or child, but each person who is a class member can file their own claim. With joint bank accounts or shared purchases, settlements differ on whether they pay one claim per account or per person. Our guide on whether spouses file separately explains it.
Red flags in claim-buying offers
- 1Anyone who offers to buy a small consumer claim, or to "advance" your payment, for a fee.
- 2Requests for your claim ID, PIN or login so they can file on your behalf.
- 3Offers that ask you to pay first to unlock a larger payment.
- 4Messages from unfamiliar companies that know which settlement you filed in.
These patterns are typical of scams. A legitimate administrator will never ask you to sell your claim. If in doubt, contact the administrator using the details in the official notice. Our settlement scams guide has more warning signs.
Businesses that dissolve or merge
A business claim can pass to a successor when one company buys or merges with another, if the deal transferred the right to the recovery. Dissolved companies can sometimes still claim through their former owners or a trustee, depending on state law and how the company was wound down. Administrators handling large business settlements often have a process for this and will ask for the purchase or merger documents that show who holds the rights.
If your business was acquired and you're unsure who owns a claim, the purchase agreement usually addresses it. A business lawyer can confirm, and the administrator can tell you what proof it accepts.
What you can do instead of selling
- ✓File the claim yourself on the official site. It usually takes a few minutes.
- ✓Ask a trusted family member to help you gather records, while filing in your own name.
- ✓Contact the administrator's help line with questions, which is free.
If someone you know offers to file for you and keep part of the money, decline. It may put your claim at risk and breach the claim form's attestation, and the process is simple enough to do yourself.
If you want help with claims, the safe kind is a tool that keeps the claim in your hands. SettleScout matches you to settlements and reminds you of deadlines, but you always file yourself on the official administrator's site.
Frequently Asked Questions
Can I sell my class action settlement claim?
Usually not for consumer claims, because claim forms require your personal attestation and many settlements bar assignments. Large business and securities claims are sometimes sold.
Can someone else file a class action claim for me?
Generally only in limited cases, such as a parent for a minor, a guardian, or an estate representative. Otherwise each class member files their own claim.
Are companies that buy settlement claims legitimate?
Some firms buy large institutional or business claims legitimately. Offers to buy small consumer claims, especially ones asking for fees or login details, are usually scams.
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