Final Approval

Final approval is the court's decision that a class action settlement can take effect. It comes after notice has gone out, class members have had a chance to file claims, opt out, or object, and the judge has held a hearing. The order typically also rules on the attorneys' fee request and any service awards for the named plaintiffs, and enters a judgment dismissing the case.

Under Federal Rule of Civil Procedure 23(e)(2), a court may approve a settlement that binds class members only after a hearing and only on finding it fair, reasonable, and adequate. The rule lists what the judge must consider: whether the class representatives and class counsel adequately represented the class, whether the deal was negotiated at arm's length, whether the relief is adequate given the costs, risks, and delay of trial, how effectively money will be distributed, the terms of any attorneys' fees, and whether class members are treated equitably relative to each other. The Class Action Fairness Act also bars final approval until at least 90 days after government officials receive notice of the settlement.

Final approval does not always mean payments go out right away. If an objector appeals, payments are usually delayed until the appeal ends, which can take a year or more. Once the approval is final and any appeals are resolved, the settlement's "effective date" arrives and the administrator begins distributing money on the schedule in the agreement.

After final approval, anyone who stayed in the class has released the claims covered by the settlement. See our guides on how to check settlement status, how long class actions take, and the fairness hearing entry.