On January 23, 2013, Class Counsel filed a Motion for an Order Designating Settlement Fund As A Qualified Settlement Fund Pursuant To 26 U.S.C. § 468b.
What does this mean?
According to the Motion, “the purpose of a Q[ualified] S[ettlement] F[und], as expressly authorized by the [United States] Code, is to ensure that the recipients of funds from such a litigation settlement are not taxed until they actually receive the funds.”
The judge has not yet ruled on the motion.
We’re not sure at this point if this would benefit the class member or the lawyers and administrators that are being paid from the settlement fund as well. However, the motion was filed simply in an abundance of caution as the Settlement Administrator has already set up the account for the settlement fund as a Qualified Settlement Fund.
The defense counsel did not oppose the motion.