In the mass and class action space, legal professionals widely recognize the significance of selecting the right third-party administrator (TPA). Amid our role as a TPA, a reoccurring question arises, “What’s the lowest estimate you can provide?” While the financial aspect is undeniably crucial, it should not be the sole determinant when vetting a TPA. Gaining a comprehensive knowledge of the numerous benefits a TPA offers to the administration process is crucial, especially when judges’ involvement in the selection process becomes more apparent. Before allowing pricing to guide the decision on which TPA to retain, it is essential to consider the following factors, which hold equal or greater significance than cost alone.
Judicial Interest
In recent years, a noteworthy shift has occurred in the way certain courts approach the selection of TPAs, making it an issue of growing significance for class action attorneys to consider. These changes aim to streamline the administration process, reduce delays, and enhance the overall experience for class members and the settlement fund. Notably, courts are no longer solely scrutinizing counsel’s decisions but are also focusing on TPAs to contribute to this goal.
