Can a Class Action Settlement Be Appealed?
Your settlement was approved, then payments stalled because of an appeal. Here's who can appeal a class action settlement and what it means for your payout.
Yes. After a judge grants final approval, a class member who objected to the settlement can usually appeal that approval to a higher court. While the appeal is pending, payments are generally on hold, because most settlements don't pay until the approval is final and all appeals are resolved. Appeals can add many months or more to the wait, and in rare cases the appeals court sends the settlement back.
Who can appeal a class action settlement
In most cases, the people who appeal a settlement are objectors: class members who filed a formal objection before the fairness hearing, arguing the settlement isn't fair, reasonable and adequate. The US Supreme Court has held that class members who objected can appeal approval of a settlement without formally joining the case as parties. Class members who didn't object generally have a much harder time appealing.
The parties themselves rarely appeal, since they agreed to the settlement. In unusual cases, a government entity or another interested party might also challenge it.
Appeals go to the next court up. For a federal class action, that's the US Court of Appeals for the circuit where the trial court sits. For a state court case, it's the state's appellate court. Appellate courts review the trial judge's decision for legal errors and abuse of discretion; they don't hold a new trial or re-weigh every detail of the deal. That standard gives trial judges a lot of room, which is one reason most approvals are upheld.
Why settlements get appealed
- ✓Attorneys' fees: objectors argue that class counsel's fee is too large compared with what the class receives.
- ✓Relief to the class: objectors argue payments are too small, the claims process is too burdensome or coupons have little value.
- ✓Unequal treatment: objectors argue some class members are treated unfairly compared with others.
- ✓Notice problems: objectors argue the class wasn't properly informed.
- ✓Release scope: objectors argue class members give up too much.
Some appeals raise real concerns and lead to better settlements. Others are filed mainly to delay payment in hopes of a side payment to drop the appeal. Courts and rule changes have tried to address that problem; since 2018, Rule 23 requires court approval for any payment to an objector in exchange for dropping an objection or appeal.
What happens to your payment during an appeal
Most settlement agreements define an effective date that comes only after final approval and the end of any appeals. Payments start after that, often following a set number of days written into the agreement. So while an appeal is pending, the administrator usually can't distribute money, even if your claim has been approved.
If you filed a valid claim, an appeal generally pauses payment rather than cancelling it. Keep your contact details up to date with the administrator so your payment reaches you when the appeal ends.
How an appeal can end
- 1Approval affirmed: the appeals court upholds the settlement and payments can proceed once the time for further review passes.
- 2Appeal dropped: the objector withdraws, sometimes after a court-approved resolution.
- 3Approval reversed or vacated: the appeals court sends the case back. The parties may revise the settlement, which could change terms or require new notice.
- 4Further review sought: a party asks for rehearing or Supreme Court review, which is uncommon and rarely granted.
How to follow an appeal
The official settlement website usually posts updates about appeals and the expected payment timeline, and the administrator's phone line can confirm the current status. You can also follow the case docket. Our guide on using court records explains how. For the usual payout schedule without an appeal, see the payment timeline after final approval.
If you think a settlement is unfair
The time to act is before the fairness hearing, by filing an objection that follows the notice's instructions. Objecting is what preserves your ability to appeal. Read how to object to a class action settlement for the steps. If your concerns are serious, consider speaking to a lawyer about the process.
Appeals stretch timelines, and it's easy to forget a claim you filed long ago. SettleScout keeps track of the settlements you've matched, so you know what's still pending.
Frequently Asked Questions
Why is my settlement payment delayed by an appeal?
Most settlements only pay after final approval and the end of any appeals. If an objector appeals, payments are usually paused until the appeals court decides.
How long does a settlement appeal take?
It varies by court and case. Appeals commonly add many months and sometimes longer. The settlement website usually posts updates.
Can I appeal a settlement if I didn't object?
Generally it's very difficult. Courts usually expect class members to raise concerns through a timely objection before the fairness hearing, which is what preserves the ability to appeal.
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