Three administrators of class-action settlements were sued in federal court over millions of dollars in undisclosed fees they allegedly collected related to digital-payments and prepaid cards they used to distribute settlement funds.

Lead plaintiff Tyler Baker alleged that Angeion Group LLC, Epiq Systems Inc., and JND Legal Administration engaged in a “manipulative and deceptive scheme” to obtain hidden compensation for their service as court-appointed administrators in thousands of class-actions across the country.

The payments they received from digital-payment platforms and fintech companies that provide the payment mechanisms were “nothing more than kickbacks” that were hidden from class counsel, the courts, ...