Global Settlement

A global settlement in the mass tort context is a negotiated resolution in which a defendant agrees to pay an aggregate sum to resolve all or substantially all pending and future claims arising from the challenged conduct, typically administered through a claims facility. Unlike individual settlements, global settlements require coordinated opt-in participation from a critical mass of plaintiffs — often 85–95% of enrolled claimants — before the defendant will fund the settlement. The structure of a global settlement directly determines funder returns: aggregate fund size, allocation methodology, and the pace of claims administration all affect net present value. Funders underwriting claims in anticipation of a global settlement must model the probability that enrollment thresholds will be met and that their funded claimants will qualify under the settlement's eligibility criteria.

Because a global settlement typically requires 85–95% claimant enrollment before the defendant will fund it, funders model enrollment-threshold risk as a distinct variable from liability risk — a docket with strong bellwether results can still stall if enrollment falls short of the defendant's walk-away trigger. Once a global settlement is reached, the funder's remaining risk shifts almost entirely to claims administration timing rather than legal merits.