Opting out of a class action means formally removing yourself from the class so you aren’t bound by the settlement. You keep your right to file your own lawsuit, but you give up any payment from the class settlement. Opting out generally makes sense only when your individual losses are large enough that your own case could be worth much more than the settlement offers, and you are prepared to pursue it.
For most people with small consumer claims, opting out isn’t worth it, because a separate lawsuit would cost far more than it could recover. But for some, especially those with serious losses, it can be the right move. Here is how to think it through.
Your Options as a Class Member
| Option | What happens | Your right to sue separately |
|---|---|---|
| File a claim | You receive your share of the settlement | Released for the covered claims |
| Do nothing | You get no payment, but are still bound | Released for the covered claims |
| Object | You tell the court you think the deal is unfair, but stay in the class | Released if the settlement is approved |
| Opt out | You are excluded from the settlement and get no payment from it | Kept |
The key point many people miss: doing nothing is not the same as opting out. If you do nothing, you usually lose the right to sue and also receive no money.
When Opting Out May Make Sense
- Your losses are large. If you lost significant money, for example from identity theft after a data breach, and the settlement caps reimbursement far below your losses.
- You have unique damages. Your situation is different from typical class members, such as a serious personal injury in a case mostly about economic losses.
- You have strong evidence. Your individual case has documentation that makes it likely to succeed on its own.
- A lawyer is willing to take your case. If an attorney believes your individual claim is worth pursuing, that is a good sign.
- The settlement releases claims you care about for very little in return.
When Opting Out Usually Doesn’t Make Sense
- Your losses are small, like a few dollars of overcharges
- You don’t have the time, money or interest to pursue your own case
- No lawyer is willing to take your individual claim
- Your claim would be expensive to prove, such as one needing expert witnesses
- The settlement already covers your losses reasonably well
The Risks of Opting Out
Opting out isn’t free. You give up a guaranteed settlement payment for the chance of a bigger recovery. Your individual case could lose, take years, or cost more than it recovers. You may also lose the benefit of the class lawyers’ work and evidence, though some of it may still be useful. In some cases, defendants have already won key rulings that make individual cases harder.
The Roundup litigation shows how this can play out. After the Supreme Court limited warning claims in 2026, opting out of the proposed class settlement became riskier for many people, because one of the strongest individual arguments was no longer available.
Arbitration Clauses
Many consumer contracts include arbitration clauses that require disputes to be resolved through individual arbitration instead of court. If you opt out of a class settlement, you may have to pursue your claim in arbitration rather than a lawsuit, depending on your contract. Some people have used mass arbitration, where many individuals file arbitration claims at once, to pressure companies. Check your contract and ask a lawyer how arbitration might affect you.
How to Opt Out Properly
Opt out procedures are strict. The class notice and settlement website will explain exactly what to do. Typical requirements include:
- A written request for exclusion, sometimes on a specific form
- Your full name, address and contact information
- A clear statement that you want to be excluded from the class
- The case name or number
- Your personal signature, often required to be signed by you, not a lawyer
- Delivery by mail or online by the deadline, usually with a postmark deadline
Missing a requirement can make your opt out invalid, which means you are still bound by the settlement. Keep a copy and proof of mailing or submission.
Opt Out Deadlines
The opt out deadline is usually set by the court and often falls before the final approval hearing. Once it passes, you generally can’t opt out. Mark it on your calendar as soon as you receive a notice, especially if you think your losses are significant.
Opting Out vs Objecting
Some people confuse these. Objecting means you stay in the class but tell the court you think the settlement is unfair, perhaps because payments are too small or attorney fees are too high. If the court approves the settlement anyway, objectors are bound by it. You generally can’t both opt out and object, since once you opt out, you are no longer part of the class.
What Happens After You Opt Out
Once you validly opt out, the settlement no longer applies to you. You won’t receive notices about payments, and you won’t be bound by the release. You are free to pursue your own claim, but the clock matters. The statute of limitations for your individual claim may have been paused while the class action was pending, under a rule known as tolling, but it starts running again after you opt out or the class is resolved. How tolling works depends on the court and state, so move quickly to file your own case.
Weighing the Numbers
A simple way to think about opting out is to compare three figures: what you would likely receive from the settlement, what your individual case might realistically be worth if you win, and the chance of winning along with the time and cost involved. If the settlement pays $500 and your documented losses are $1,000, opting out rarely makes sense, because legal costs and risk would likely eat up the difference. If the settlement caps your payment at $5,000 and you have $80,000 in well documented losses, the math looks very different. A lawyer can help you estimate these numbers honestly.
Opting Out of Injury Related Class Settlements
Most class actions involve financial harm, but a few settlements, like the proposed Roundup class settlement, include people with physical injuries. In those cases, opting out is a more significant decision because injury claims can be worth much more than consumer claims. At the same time, individual injury cases face their own challenges, such as proving causation and dealing with legal rulings that may favor the defendant. Anyone with a serious injury who receives a class notice should get independent legal advice before the deadline.
Can You Change Your Mind?
Some courts allow class members who opted out to rejoin the class before a certain date, but this isn’t guaranteed. Likewise, once the opt out deadline passes, you usually can’t leave the class. Treat the decision as final and make it carefully.
Mass Opt Outs
Sometimes many class members opt out together, often organized by lawyers representing a large group of people with bigger claims. Settlements frequently include a clause allowing the defendant to cancel the deal if too many people opt out. Large opt out numbers can signal that many people think the settlement is too low, and courts consider this when deciding whether to approve a deal.
A Quick Example
After a data breach at a large retailer, a class settlement offers up to $5,000 in reimbursement for documented losses. Karen’s identity was stolen after the breach, and she lost over $40,000 from fraudulent loans and spent months repairing her credit, costing her a job opportunity. A lawyer reviews her evidence, believes her losses are well documented and can likely be traced to the breach, and agrees to take her case. Karen submits a valid opt out request before the deadline and pursues her own claim. For most other class members with smaller losses, filing a claim in the settlement is the better choice.
Opting Out in Securities Cases
Large institutional investors, like pension funds, sometimes opt out of securities class action settlements to pursue individual claims because their losses are large enough to justify it. Individual investors with modest losses usually file claims in the class settlement instead.
Talk to a Lawyer Before Opting Out
If you are seriously considering opting out, talk to a lawyer first. Class counsel, whose contact information is on the notice, can explain the settlement but represents the class as a whole. An independent lawyer can evaluate whether your individual claim is worth pursuing and handle the opt out correctly.
Common Opt Out Mistakes
- Sending the request to the wrong address, such as the company instead of the administrator
- Missing the postmark deadline by a day or two
- Forgetting to sign the request personally
- Leaving out required information like the case name
- Filing a claim and an opt out request, which can create confusion
- Assuming an email to class counsel counts as an opt out
Follow the notice instructions exactly, keep copies and use a mailing method with tracking.
Questions to Ask an Independent Lawyer
- How does my individual claim compare with what the settlement offers?
- What would my own case cost and how long would it take?
- Does an arbitration clause apply to me?
- How would tolling affect my deadline after opting out?
- Would you take my individual case, and on what terms?
What to Do Next
If you received a class action notice, read it carefully and check the deadlines for filing a claim, objecting and opting out. For most people, filing a claim is the simplest and best choice. If your losses are large or unusual, talk to an independent lawyer before the opt out deadline to see whether pursuing your own case makes sense.
Sources
- United States Courts: Federal Rule of Civil Procedure 23
- Federal Judicial Center: Class Action Notices
- Federal Trade Commission: Consumer Information
This article is for general information only and is not legal advice. Laws change and every case is different, so speak with a licensed attorney in your state about your own situation.
Frequently Asked Questions
Can I opt out of a class action I never heard about?
Only before the opt out deadline. If you learn about a case late, check the settlement website immediately for the current deadline.
What is tolling in a class action?
Tolling means the statute of limitations for your individual claim may be paused while the class action is pending. The rules vary, so get advice on your deadline.
Can a lawyer opt out for me?
Many settlements require the class member’s personal signature on the opt out request, though some allow lawyers to submit requests. Check the notice.
Will opting out affect my credit or relationship with the company?
No. Opting out is a legal choice about the lawsuit and doesn’t affect your credit or your account with the company.
Does opting out cost anything?
Submitting an opt out request is free. Pursuing your own claim afterward may involve legal costs, though many lawyers work on contingency.
What does it mean to opt out of a class action?
It means excluding yourself from the class so you aren’t bound by the settlement and keep your right to sue separately, but you receive no settlement payment.
Is doing nothing the same as opting out?
No. If you do nothing, you usually lose your right to sue and also receive no payment.
Should I opt out of a class action?
Usually only if your losses are large, well documented and a lawyer believes your individual case is worth pursuing.
How do I opt out?
Follow the instructions in the class notice exactly, usually by sending a signed written exclusion request by the deadline.
Can I opt out after the deadline?
Generally no. Once the deadline passes, you remain part of the class.
Can I object and opt out at the same time?
Generally no. Opting out removes you from the class, so you can’t also object as a class member.
