Settlement Statement

A settlement statement (sometimes called a distribution statement or net sheet) is a detailed financial breakdown of how settlement proceeds are allocated. It starts with the gross settlement amount and itemizes all deductions: attorney contingency fee (calculated as percentage of gross), case expenses advanced by the firm (filing fees, medical record costs, expert fees, deposition costs), outstanding medical liens (with negotiated reductions documented), health insurer or ERISA plan reimbursements, Medicare/Medicaid conditional payments, any other valid liens, and applicable state taxes or structured payment costs. The resulting figure is the client's net recovery. Settlement statements must be accurate and transparent because clients have rights to understand exactly what they're receiving and why. Attorneys have ethical obligations to disbursement accuracy. Errors can result in client disputes, disciplinary complaints, and in some cases, civil liability. Modern settlement software can pull case cost records, apply current lien amounts, and generate accurate statements automatically.