A class-action suit against a utility company resulted in a settlement of $2.8 million for 81,000 customers. If the legal fees, which must be paid from the settlement, are $600,000, what amount will each plaintiff receive?

Question

Business

Deanna Estes

14 August, 10:51

A class-action suit against a utility company resulted in a settlement of $2.8 million for 81,000 customers. If the legal fees, which must be paid from the settlement, are $600,000, what amount will each plaintiff receive?

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Answers (1)

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Maryjane Burke · Answer 1

The correct answer is $27.16.

Explanation:

According to the scenario, the given data are as follows:

Settlement amount = $2,800,000

Total customers = 81,000

Legal fees = $600,000

So, we can calculate the amount received by each plaintiff by using following formula:

Amount received by each = (Settlement amount - Legal fees) : Number of customers

= ($2,800,000 - $600,000) : 81,000

= $2,200,000 : 81,000

= $27.16