What Is a Release of Claims?
The release is what the defendant gets in return for paying. It ends class members' right to sue over the claims the settlement covers.
A release of claims is the part of a settlement agreement in which class members give up their right to sue the defendant over the issues the case covered. It is what the defendant receives in exchange for paying, and it applies to every class member who does not opt out, whether or not they file a claim.
Why it matters to you
Many people assume that filing a claim is what waives their rights. In fact, staying in the class is what does it. If you fit the class definition and let the exclusion deadline pass, the release binds you once the settlement is approved. That is why it is worth claiming any payment you are entitled to: you give up the claim either way.
What a release typically covers
- ✓Claims based on the same facts or conduct alleged in the lawsuit
- ✓Claims during the defined class period
- ✓Sometimes related parties such as subsidiaries, vendors or partners of the defendant
- ✓Sometimes known and unknown claims, so you cannot sue later over something you discover afterward
Releases usually do not cover unrelated claims, claims for conduct after the class period, or claims explicitly excluded in the agreement, such as personal injury in some product cases. The exact scope depends on the wording.
A simple example
A settlement resolves claims that a company charged a hidden fee. The release covers all claims about that fee during the class period. If the same customer later has a separate dispute about a damaged shipment, the release normally would not stop them from pursuing it.
Reading the release
Look for the defined terms in the agreement, such as "Released Claims" and "Released Parties." They tell you which claims and which companies are covered. If you have a significant claim that might fall inside the release, such as a large financial loss, talk to a lawyer before the exclusion deadline, because after it passes the release will bind you.
Related terms
You avoid the release only by an opt-out. An overly broad release is a common ground for an objection. See also do you give up your right to sue by filing a claim.
Since the release applies anyway, it pays to claim what you are owed. SettleScout matches you with open settlements so fewer of them pass you by.
Frequently Asked Questions
Does filing a claim mean I give up my right to sue?
Staying in the class is what triggers the release, not filing itself. If you are a class member and do not opt out, you are bound whether or not you file.
Where do I find the release language?
It is in the settlement agreement and usually summarized in the long-form notice on the official settlement website.
Can a release cover claims I don't know about yet?
Many releases include unknown claims related to the same conduct. Read the language carefully, and ask a lawyer if your situation is significant.
See every settlement you qualify for
Tell SettleScout which brands you use. It finds your matches, estimates your payouts and reminds you before deadlines.
Free to download