What Is a Settlement Class?
The settlement class is the exact group of people a settlement pays and binds. Its definition decides whether you can file a claim.
A settlement class is the group of people, defined in a settlement agreement and approved by the court, who are covered by a class action settlement. Everyone in it can claim the benefits and is bound by the release unless they opt out.
Why it matters when you file a claim
The settlement class definition is the single test of whether you are eligible. Administrators check claims against it, so a claim from someone outside the definition will normally be denied, however sympathetic the story.
Settlement class definitions usually combine a few elements:
- ✓Who: customers, account holders, employees, or people whose data was exposed.
- ✓What: a product, service, fee, or incident.
- ✓When: a date range, called the class period.
- ✓Where: nationwide, or limited to certain states.
- ✓Exclusions: typically the defendant's employees, the judge, and people who already settled separately.
A simple example
A lawsuit might originally be filed for everyone affected by a data breach. When the parties settle, they might define the settlement class as all US residents who were sent a breach notice letter. If you were affected but never got a letter, the definition matters a great deal, and you would need to check whether you are covered.
Settlement class vs. litigation class
A litigation class is certified while the case is still being fought, and the court must be satisfied the case could be tried as a class. A settlement class is certified as part of approving a deal. Because there will be no trial, the court focuses on whether the class is cohesive and fairly represented rather than on how a trial would be run. For you as a claimant, the practical difference is small: either way, the definition in the final approved settlement decides whether you can file.
How it relates to other terms
Sometimes a court certifies a class during litigation. Often, though, the parties settle first and ask the court to certify a class only for settlement purposes. The court still checks the requirements of Rule 23, but it doesn't have to worry about how a trial would be managed. A settlement class can be divided into subclasses, and each person in it is a class member.
SettleScout reads each settlement's class definition so it can flag the ones that fit you. Add your brands and services to see your matches and track their deadlines.
Frequently Asked Questions
Where do I find the settlement class definition?
It appears in the official notice, on the settlement website, and in the settlement agreement itself, usually near the start.
Can the settlement class be different from the class in the original lawsuit?
Yes. The settlement class is often narrower or broader than the class first proposed in the complaint. The settlement version is the one that controls who gets paid.
What happens if I am in the settlement class but do nothing?
You are usually bound by the settlement's release. You only receive money if you file a valid claim or if the settlement pays class members automatically.
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