What Is an Opt-Out?
Opting out removes you from a class action. You give up any settlement payment but keep the right to bring your own claim.
An opt-out, formally called a request for exclusion, is a written request to be removed from a class action. If you opt out, you are not bound by the settlement or judgment, you receive no payment from it, and you keep the right to pursue your own claim against the defendant.
Why it matters to you
In most damages class actions, you are included automatically if you fit the class definition. Doing nothing means you stay in and give up your right to sue separately over the same issues. Opting out is how you preserve that right. It rarely makes sense for small consumer claims, but it can matter if your losses are large or unusual.
When people consider opting out
- ✓Their losses are much larger than what the settlement offers
- ✓They already have, or plan to file, an individual lawsuit or arbitration
- ✓They object in principle to being bound by the settlement
- ✓A lawyer has advised that an individual claim is stronger
Opting out has real tradeoffs. Individual cases take time and money, and the statute of limitations on your own claim still applies. A lawyer can help you weigh it.
A simple example
A settlement offers a modest flat payment to everyone affected by a defective appliance. One homeowner suffered significant property damage. They send a signed exclusion request before the deadline, receive nothing from the settlement, and pursue their own claim with a lawyer.
How to opt out
The notice explains exactly how. Typically you must send a signed written request to the settlement administrator by mail, stating your name, address, the case name, and that you want to be excluded. Some settlements accept online forms. Requests sent after the deadline, or missing a signature, can be rejected. Keep a copy and proof of mailing.
Related terms
The cutoff for opting out is the exclusion deadline. Staying in but challenging the deal is an objection. Our guide on how to opt out of a class action covers the process step by step.
SettleScout lists the exclusion and claim deadlines for each settlement you match, so you can decide calmly instead of at the last minute.
Frequently Asked Questions
Can I opt out and still get paid?
No. Opting out removes you from the settlement entirely, so you cannot receive any payment from it.
Can I change my mind after opting out?
Some courts allow you to revoke an opt-out before a deadline, but this is case-specific. Check the notice or contact the settlement administrator.
Does every class action allow opt-outs?
No. Classes seeking only injunctive relief, such as Rule 23(b)(2) classes, often do not allow opt-outs. Most damages class actions do.
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