What Happens If You Do Nothing in a Class Action?

If you do nothing in a typical class action settlement, you remain a class member. You're bound by the settlement's release, so you can't sue the company over the same claims later, and you receive no money unless the settlement pays class members automatically. Doing nothing is the default, but it's rarely the best choice.

Your four options when you get a notice

A class action notice usually lays out the same set of choices. Understanding them makes clear what doing nothing really means.

1. 1File a claim: you stay in the class, give up the released claims and get paid if your claim is approved.
2. 2Opt out: you leave the class, keep your right to sue and get nothing from the settlement.
3. 3Object: you stay in the class and tell the court why you think the settlement is unfair. You can usually still file a claim.
4. 4Do nothing: you stay in the class, give up the released claims and get nothing unless payment is automatic.

Put side by side, doing nothing combines the cost of staying in the class with none of the benefit. That's why it makes sense to at least read the notice and decide.

Why you're bound even if you ignore it

Federal Rule of Civil Procedure 23 lets courts bind absent class members to a judgment as long as they received adequate notice and had the chance to opt out. In the most common kind of money class action, a judgment or approved settlement covers everyone in the class definition who didn't exclude themselves. You don't need to sign anything for it to apply.

When doing nothing still gets you paid

Some settlements pay class members automatically. This usually happens when the company has good records of who was affected and how much each person paid, such as a bank charging specific fees or a service billing specific customers. In those cases the administrator sends payments to everyone on the list, and no claim form is needed.

• ✓Overdraft and bank fee settlements often credit current customers' accounts or mail checks to former ones.
• ✓Subscription and billing settlements can sometimes pay based on billing records.
• ✓Securities settlements usually still require a claim, even though brokers hold the records.

Even in automatic settlements, there may be an option to choose how you're paid, or to update your address so the check reaches you. Our guide to automatic payment vs claim form settlements explains how to tell which kind you're dealing with.

When doing nothing is a reasonable choice

If you're not actually a class member, doing nothing is correct. A notice reaching you doesn't prove you're in the class; administrators often mail broad lists, and the class definition is what counts. The same goes if you don't remember buying the product or using the service. Claim forms are signed under penalty of perjury, so you should never file one just because you got a notice. You don't owe anyone a response, and doing nothing in that case costs you nothing real.

If you are a class member, though, the payment may be small but it's usually free to claim and takes a few minutes. Since you're giving up the released claims either way, filing is the better deal. The only real cost is a few minutes and some basic information.

What to do if you realize too late

If the claim deadline has passed, check the official settlement website anyway. Deadlines are occasionally extended, and a few settlements allow late claims at the administrator's discretion. Don't count on it, but it's worth a look. Our guide on missed settlement deadlines covers the realistic options, and is it too late to join a class action covers cases that are still in progress.

Most people do nothing simply because they never notice the deadline. SettleScout watches the settlements that match the brands and services you use and reminds you before each claim window closes, so you can make the choice on purpose.