Reflecting the heightened scrutiny of settlements including cy pres relief, the district court in In re Hydroxycut Marketing and Sales Practices Litig., No. 09-CV-1088 (S.D. Cal. Nov. 19, 2013), rejected a class action settlement.  The settlement created a $10 million cash fund, class members were permitted to make claims against the fund, and funds unclaimed after six years were then to be distributed to an appropriate organization.  While recognizing law permitting cy pres funds, the court’s review focused on whether the fund would benefit the class.  The court concluded that it would not do so.  In addition, the court found the remedy permitted a disproportionate allocation of settlement benefits to one portion of the class, to the detriment of the remainder of the class.  The court also relied on decisions explaining that class action settlements should first attempt to benefit the class members directly, and cy pres distribution should represent a small portion of the settlement relief.