Opting Out of a Class Action: Deadlines and Choices

When a class action settles, people in the class usually get a notice with several choices. One of them is to opt out, also called excluding yourself. It sounds simple, but it has real effects on your rights. Once the deadline passes, the choice may be locked in. This guide explains what opting out means, how it compares with the other options, and what to think about before you decide.

What opting out means

In a class action, one or a few people sue for a whole group with similar claims. If the court approves a settlement, class members are generally bound by it, including a release that gives up certain claims against the company.

Opting out means you remove yourself from the class. In general:

• You do not receive money or benefits from the settlement.
• You are not bound by the settlement's release.
• You keep your right to bring your own claim, if you choose, subject to deadlines and other legal limits.

Opting out is not the same as winning a better deal. It simply keeps your own claim separate. Whether pursuing it makes sense depends on your losses, the evidence, the costs, and the law.

The four usual choices compared

Settlement notices commonly describe these options:

• File a claim. You stay in the class, accept the release, and ask for your share of the benefits.
• Do nothing. You stay in the class and are bound by the release. You may receive nothing if a claim form is required.
• Opt out. You leave the class, get nothing from the settlement, and keep your own claim.
• Object. You stay in the class but ask the court to consider why you think the settlement is unfair. In general, you cannot both opt out and object, because once you leave the class, the settlement no longer affects you.

Read your notice to see exactly which options it offers and how each one works for that case.

Where to find the deadline

Each settlement sets its own deadlines, and they are printed in the notice and on the official settlement website. There is no single national deadline that applies to every case. Look for wording such as "exclusion deadline," "opt-out deadline," or "request for exclusion."

Pay attention to what the deadline means. Some notices say the request must be postmarked by a date; others say it must be received by a date. Some allow online requests; others require a signed letter. If you miss the deadline, you may stay in the class whether you meant to or not.

Mark the date on a calendar as soon as you get the notice. If you think you might opt out, do not wait until the last week to decide.

How opt-out requests usually work

The notice explains the steps. A typical request includes:

• Your name, address, and sometimes phone number or email
• The case name or number
• A clear statement that you want to be excluded from the class
• Your signature

Some settlements require the person to sign personally, not through someone else. Follow the instructions exactly. Keep a copy of what you send, and use a delivery method that gives you proof of mailing or a confirmation. If you submit online, save a screenshot of the confirmation page.

Reasons people consider opting out

People think about opting out for different reasons. For example, someone may:

• Have losses much larger than what the settlement provides
• Have a personal injury or other harm that is not well matched to the class claims
• Already have a lawyer and a separate case in progress
• Object to the release covering claims they want to keep

On the other hand, an individual case can take time and money, and the outcome is uncertain. A settlement payment is often modest but comes with less effort. Weighing these trade-offs is where advice from a lawyer can help.

Time limits on your own claim

If you opt out to bring your own claim, other deadlines still apply. Every claim is subject to time limits set by law, often called statutes of limitations. These limits vary by state and type of claim. In some situations, the time a class action is pending may affect those limits, but the rules are technical and can differ by court.

Do not assume you have plenty of time. If you are opting out to pursue your own case, talk to a lawyer before you send the request, not after.

Talking to a lawyer

The lawyers named in the notice as class counsel represent the class. You can ask them questions about the settlement. If you want advice about your own interests, especially about opting out, you may want to speak with a lawyer who represents only you.

Useful questions to ask:

• What do I give up if I stay in the class?
• What would my own case involve, and how long might it take?
• What deadlines apply to my claim if I opt out?
• How would you charge for an individual case?

For workplace claims that come up as class actions, our employment law practice page lists lawyers who handle these matters. You can read related legal guides on our site.

If cost is a concern, the USAGov legal aid page lists programs that offer free legal advice and help finding free or low-cost attorneys. For questions about a consumer settlement that seems suspicious, your state consumer protection office may help.

Frequently asked questions

If I opt out, can I change my mind later?

Sometimes a court allows it, but you should not count on it. Read the notice and ask the claims administrator or a lawyer before you send the request.

Can I opt out and still object to the settlement?

Generally no. Objecting is for people who stay in the class. Once you opt out, the settlement does not bind you.

What happens if I miss the opt-out deadline?

You usually remain in the class and are bound by the settlement and its release if the court approves it.

Do I need a lawyer to opt out?

Not necessarily. The steps are in the notice. But if you are opting out to bring your own claim, talking to a lawyer first is wise.

This page is general information, not legal advice. Laws change and every case is different — talk to a licensed attorney about your situation.