Dozens of passengers who scrambled off the Queen of the North as the ferry began sinking in waters off B.C.'s coast more than four years ago have settled a class-action lawsuit for $350,000.

But after legal fees are subtracted, more than 40 passengers who will be eligible for the settlement will have only $140,000 to split between them.

The passengers filed the lawsuit against BC Ferries after the ferry ran aground south of Prince Rupert in March 2006, killing two people whose bodies were never found.

A document filed in B.C. Supreme Court by the passengers' lawyer ahead of a hearing scheduled for Thursday asks the court to approve a settlement of $350,000 for the passengers, with about $210,000 going towards legal costs.

Three passengers have already received settlements ranging from a few hundred dollars to $10,000, and the families of the two dead passengers have also settled.

A lawyer for the passengers wasn't immediately available for comment, and BC Ferries declined to discuss the lawsuit while it's before the court.