Opt Out (Request for Exclusion)

To opt out of a class action means to send a formal request for exclusion so you are no longer part of the class. In most class actions seeking money, membership is automatic: if you fit the class definition, you are in unless you opt out. Being in means you can receive a share of any settlement or judgment, but you are also bound by it and give up your right to sue separately over the same claims.

The right comes from Federal Rule of Civil Procedure 23. For classes certified under Rule 23(b)(3), the notice must tell class members that the court will exclude from the class any member who requests exclusion, and explain the time and manner for doing so. Rule 23(e)(4) also lets a court refuse to approve a settlement unless it gives class members a new chance to opt out. Opt-out deadlines are set by the court and are strict. The notice explains exactly what to send, usually a signed letter with your name, address, and a statement that you want to be excluded, mailed to the settlement administrator.

Opting out makes sense mainly when your individual claim is worth much more than the settlement offers, for example if you suffered a serious injury or large documented losses, and you are prepared to pursue your own case. For most people with small claims, staying in is simpler. You cannot both opt out and object, since objecting requires staying in the class.

See our guides on opting out of or objecting to a class action, whether you can be bound by a settlement, and the objector entry.