Preliminary Approval

Preliminary approval is the first time a judge formally reviews a proposed class action settlement. After the parties sign a settlement agreement, class counsel files a motion asking the court to approve sending notice to the class. The judge looks at the terms, the proposed notice, and the claims process before deciding whether the class should hear about it.

Under Federal Rule of Civil Procedure 23(e)(1)(B), the court must direct notice to the class if the parties show the court will likely be able to approve the settlement as fair, reasonable, and adequate, and certify the class for purposes of judgment on it. That "likely" standard is why preliminary approval is not a guarantee. It means the deal clears an initial screen, not that the judge has finally approved it.

The preliminary approval order usually appoints the settlement administrator, approves the notice plan, and sets the schedule: when notice goes out, the deadline to file claims, the deadline to opt out or object, and the date of the final approval (fairness) hearing. That order is the point when a settlement website typically goes live and people start receiving emails and postcards.

Class members should read the notice carefully once preliminary approval is granted, since the deadlines it sets are strict. Payments do not go out until after final approval and any appeals are resolved. See our guides on how a class action works, how to check settlement status, and the final approval entry.