SB4 Summary

• Circuit courts must establish a specific plan for distributing residual funds from class action common funds to the Department of Child Abuse and Neglect Prevention when class action lawsuits governed by Alabama law result in undistributed funds.

• Residual funds include amounts remaining because class members cannot be located, direct distribution is not economically feasible, class members fail to claim funds, or funds remain undistributed after the court-established deadline.

• The bill does not restrict parties' rights to contract for reversion of residual funds to the paying party or to court-designated beneficiaries as an alternative distribution method.

• Circuit courts may suspend the residual fund distribution requirements if they find such requirements substantially impede settlement negotiations between class action parties.

• The act became effective immediately upon passage and approval by the Governor.