Qualified Settlement Fund (QSF) Administration
Managing and distributing settlement funds is an important part of any complex settlement. EisnerAmper is a top 20 accounting and business advisory firm with extensive experience administering Qualified Settlement Fund (QSF) trust accounts.
What Is a Qualified Settlement Fund?
A qualified settlement fund is a trust account used to hold, manage, and distribute settlement funds. QSFs are most commonly used in complex, multi-party settlements, allowing defendants to discharge their responsibility upon payment of the agreed-upon settlement amount while offering several benefits to the plaintiffs. QSFs also provide attorneys or administrators time to resolve barriers to claimant payments, such as healthcare lien repayment obligations.
QSF Administration Process & How It Works
QSFs must be established by court order. The involved law firms will submit a motion and draft order for the Court to review and approve. Once the Court enters the order, the account can be opened. Following the allocation of settlement awards, settlement statements are sent to claimants to review and sign. Settlement funds are then distributed.
Benefits of QSF Administration
Employing a QSF Administrator can help law firms by:
- Avoiding conflict of interest issues, where the plaintiff’s attorneys may represent more than one client
- Coordinating with other administrators involved in a settlement, such as for Lien Resolution, Bankruptcy, and/or Probate issues
- Maintaining a master ledger and performing a final reconciliation of the account
- Assuming the burden of tax filings and any 1099 distributions
- Providing better financial security through favorable banking relationships
Our QSF Administration Services and Capabilities
EisnerAmper works closely with trusted banking partners to manage settlement investments and provide necessary accounting functions, such as account reconciliations and tax returns. Our comprehensive QSF services team assists with:
Developing and maintaining claims management portal and database Collaborating on the motion and order for law firms to file with the Court Obtaining TIN and opening bank account(s) upon Court approval Preparing claimant distribution schedules Emailing settlement statements to claimants for review and electronic signature
Providing executed settlement statements to claimants and law firms Managing settlement statements, check payments, and digital disbursements. Executing distributions to claimants and law firms QSF tax filings and 1099 distribution Project management, administration, and reporting
Why EisnerAmper for QSF Administration?
EisnerAmper is a top 20 accounting and advisory firm, which gives us a deep bench of resources and expertise to draw upon when approaching complex settlements. The regulatory and compliance requirements for CPA firms illustrate our team’s unwavering commitment to confidentiality, objectivity, integrity, accountability, and quality. Our team has worked on many large QSF projects, and disbursed billions of dollars to thousands of claimants nationwide.
Sample Experience
- In re: Essure Products Liability Litigation (Docket Settlements)
- In re: Southern California Gas Leak “Porter Ranch” (JCCP 4861) (Docket Settlements)
- In re: Proton-Pump Inhibitor Products Liability Litigation (MDL 2789)
- In re: Testosterone Replacement Therapy Products Liability Litigation (MDL 2545)
- In re: E. I. Du Pont De Nemours and Company C-8 Personal Injury Litigation (MDL 2433)
What's on Your Mind?
Brooke Hodge
Brooke Hodge is a Senior Director of Class & Mass Action, Legal Administration Services Group. In her role, she works with law firms, state, and federal courts, and court-appointed neutrals to streamline claims administration efforts for mass torts, mass arbitration, and class action settlements nationwide (including multidistrict litigation).
Start a conversation with Brooke