Should I opt out of a class action settlement?

For most class members the answer is no. The math: pro rata payouts in consumer class actions typically run from a few dollars to a few hundred dollars per claimant, but pursuing an individual lawsuit costs tens of thousands of dollars in attorney fees, expert witnesses, depositions, and court costs — and the outcome is uncertain. Opting out generally makes sense only when (a) your individual damages are large enough to justify the cost of a solo lawsuit (typically $50,000+ in real losses), (b) you have specific evidence the class settlement doesn't account for, or (c) you have a separate non-monetary objective like injunctive relief tied to your particular circumstances.

How do I opt out of a class action settlement?

Each settlement has its own opt-out procedure spelled out in the class notice. The standard process: (1) write a signed letter to the settlement administrator that includes your full name, address, the case caption and case number, and a clear statement that you want to be excluded from the class settlement; (2) mail it to the address specified in the class notice, postmarked by the Opt-Out Deadline set in the preliminary approval order; (3) keep a copy of the letter and proof of mailing (certified mail or USPS tracking is recommended). Some settlements also accept exclusion requests through the official settlement website's online opt-out form.

When is the deadline to opt out of a class action?

The Opt-Out Deadline is set by the court in the preliminary approval order and printed on the official class notice. It is typically 60-90 days after the Notice Date and is a postmark deadline (the date the U.S. Postal Service postmarks the envelope, not the date the administrator receives the letter). Missing the deadline almost always means losing the right to opt out — courts rarely accept late exclusions absent a compelling reason.

What is the difference between opting out and objecting?

Opting out removes you from the class settlement entirely: you get nothing, but you keep the right to sue individually. Objecting keeps you in the class but raises concerns about the settlement that the court must address at the final approval hearing: if the court agrees with you, the deal can be modified or rejected. You can do one or the other, but not both. Class members who want to stay in but think the deal is unfair object; class members who think they can do better on their own opt out.

What happens if I do nothing? Do I have to file an opt-out form to stay in the class?

No. Class action settlements are 'opt-out,' not 'opt-in,' meaning you are automatically a class member if you fit the class definition and you take no action. To receive money you generally still need to file a claim form, but to remain bound by the release of claims and eligible to participate, doing nothing is enough. Only those who affirmatively opt out by the deadline are excluded.

Home › Class Action Dictionary › Opt Out / Exclusion

Class Action Opt Out / Exclusion: When to Leave & How to Do It (2026)

Q: What does it mean to opt out of a class action settlement?

Opting out (also called requesting exclusion) means a class member submits a written request to the settlement administrator asking to be removed from the class action settlement. A timely, valid exclusion has two effects: (1) the class member receives no money or benefits from the settlement, and (2) the class member is not bound by the release of claims, meaning they can still file their own individual lawsuit against the defendant for the same alleged conduct.

By Steve Levine · Updated May 15, 2026 · 9 min read

Quick Answer

To opt out of a class action settlement, mail a signed letter to the settlement administrator (address on your class notice) with your name, the case caption, and a clear statement that you want to be excluded. Postmark by the Opt-Out Deadline set in the preliminary approval order. Opting out means you get nothing from the settlement but keep the right to sue individually. For most class members with small damages, staying in is the better call.

Definition

Opt out (also called exclusion) is a class member's written request to be removed from a class action settlement. A timely, valid exclusion has two effects: (1) the class member receives no money or benefits from the settlement, and (2) the class member is not bound by the release of claims, so they can still file their own individual lawsuit against the defendant for the same alleged conduct.

The Core Trade-off in One Sentence

Staying in costs you the right to sue the defendant individually. Opting out costs you any settlement money. For most consumer class members, staying in is the right call because the cost of an individual lawsuit far exceeds the small per-claimant settlement share. For class members with large individual damages or a strategic non-monetary objective, opting out can be the right call.

When Opting Out Usually Makes Sense vs Usually Doesn't

Usually Stay In

Your damages are modest (a few dollars to a few hundred dollars).
You have no documented out-of-pocket losses you couldn't claim under the tiered settlement.
You don't have or want to retain individual counsel.
You'd be filing under the same statute as the class.
The settlement gives a meaningful "no proof" payment that matches your situation.
Your case wouldn't survive a defendant's standard defenses (arbitration agreement, statute of limitations, etc.) on its own.

Usually Opt Out

You have substantial individual damages (often $50,000+ in real losses).
You have evidence the class settlement doesn't account for — serious physical injury, identity theft losses, lost wages.
You already have individual counsel investigating the same claims.
The settlement releases broader claims than the class case actually litigated, and those broader claims have value to you.
You have a specific non-monetary objective (injunctive relief tied to your situation).
The class settlement amount strikes you as objectively unfair given your specific facts.

How to Actually Opt Out — Step by Step

Each settlement has its own opt-out procedure spelled out in the class notice. The standard process:

• Find the Opt-Out Deadline. Printed on the class notice and the official settlement website. Set by the court at preliminary approval. Typically 60-90 days after the Notice Date and is a postmark deadline.
• Find the opt-out address. Printed in the class notice. Goes to the settlement administrator, not to the court or to the defendant.
• Draft a signed letter that includes:
    · Your full legal name;
    · Your mailing address (and phone or email, optional);
    · The case caption and case number (e.g., Smith v. Big Co., Case No. 2:24-cv-12345);
    · A clear statement: "I want to be excluded from the class settlement in this case and I do not want to be bound by the release of claims";
    · Your signature and the date.
• Send it via trackable mail. Certified mail with return receipt, USPS Priority Mail with tracking, or a courier with delivery confirmation. The postmark date is what controls timeliness.
• Keep a copy and the tracking record. If the administrator later disputes whether the request was timely, the tracking information settles it.
• Some settlements accept online opt-out through the official settlement website. The class notice will say so explicitly. Online opt-out is faster and creates a digital receipt; mail is the universally-accepted fallback.

What Opting Out Does and Doesn't Do

What it does:

• Removes you from the settlement. You get no money or benefit from the deal.
• Preserves your right to sue the defendant individually for the same conduct.
• Removes you from the release of claims, so the settlement doesn't bind you.

What it doesn't do:

• It doesn't kill the underlying class action. The case proceeds for all other class members who stay in.
• It doesn't entitle you to anything from the defendant. To recover, you still have to bring (or arrange counsel to bring) your own lawsuit.
• It doesn't pause or extend any statute of limitations. The clock on your individual lawsuit continues to run.
• It doesn't override an arbitration clause you may already have agreed to with the defendant.

Opt Out vs Object — Pick One

These are two different tools.

• Opt out = "I want out of this settlement entirely."
• Object = "I want to stay in, but I think the deal is unfair and the court shouldn't approve it as-is."

You can do one or the other, but not both. Opting out removes your standing to object — once you leave the class, you no longer have an interest in whether the court approves it. Class members who want the deal to improve but who don't want to walk away should object, not opt out. The court reviews timely objections at the Final Approval Hearing.

What Happens After You Opt Out

• The settlement administrator processes your exclusion request and adds you to the opt-out list filed with the court.
• At the Final Approval Hearing, the court reviews the opt-out count as part of evaluating class response to the settlement. A high opt-out rate can be a reason for the court to scrutinize whether the deal is fair.
• You are no longer a class member. You will not receive settlement payments. You will not receive future case updates from the administrator. The official settlement website no longer applies to you.
• The statute of limitations on your individual claim is the one set by state or federal law for that claim type, running from the date the cause of action accrued. The filing of the class action may have paused (tolled) the statute under American Pipe and its progeny, but only up to the point the court ruled on certification or notice; once you opt out, the tolling effect for you typically ends.
• If you decide to file individually, you'll need to retain counsel or file pro se. Most large class actions get filed in federal court, where pro se representation against represented corporate defendants is difficult.

Common Mistakes to Avoid

• Missing the postmark deadline. Courts almost never accept late opt-outs absent a compelling reason. Mail early.
• Sending the opt-out to the wrong address. The court and the defendant don't process opt-outs. Only the settlement administrator does. Send it to the address in the class notice.
• Omitting required information. Missing name, address, case caption, or signature can void the request. Use the class notice's checklist.
• Trying to both opt out and file a claim. Filing a claim form is treated as electing to stay in. Once you file a claim, courts rarely allow a later opt-out.
• Opting out and not actually filing. Opting out preserves your right to sue, but does not file your lawsuit for you. If you opt out and then do nothing, the statute of limitations may run before you get to court.

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

About This Page

General legal-process information, not legal advice. Whether to opt out of any specific class action settlement is a decision that depends on your individual facts and on the controlling law in your jurisdiction. If you are considering opting out because of substantial individual damages, talk to an attorney licensed in your state before the Opt-Out Deadline.

For more open class actions keep scrolling below.