Global Settlement

A global settlement is an agreement that resolves a large group of related claims at once, usually with a defendant's participation thresholds and a claims process. It converts many individual outcomes into one coordinated event.

Mass tort defendants often prefer a single program that covers most claimants and ends the litigation. The terms commonly include a participation threshold, a matrix that assigns values and a mechanism for opt-outs.

For capital providers, it changes the analysis. Individual case outcomes become subject to a program with its own timeline, deductions and administration, and the main questions turn to participation rates, matrix placement and payment sequence.

A global settlement is not a guarantee of payment on every claim. Each claimant's recovery depends on eligibility under the program.