If you have received a notice saying you are part of a class action lawsuit, you might be wondering whether you can opt out and what happens if you do. The answer is yes — in most class actions, you have the right to exclude yourself. But whether you should depends on your situation.
What Does It Mean to Opt Out of a Class Action?
Opting out means you are choosing to exclude yourself from the class action settlement or lawsuit. When you opt out:
- You will not receive any money from the class action settlement
- You will not be bound by the settlement terms
- You keep your right to sue the defendant independently on your own or as part of a different legal action
If you do not opt out, you are automatically included in the class. If the settlement is approved, you will be bound by its terms — meaning you give up the right to sue the defendant separately for the same issue, whether or not you file a claim.
Why Would Someone Opt Out?
There are several reasons a class member might choose to opt out:
1. You Suffered Greater Harm Than the Typical Class Member
Class action settlements often pay the same amount to everyone or calculate payments based on general formulas. If your individual damages are significantly higher than what the settlement offers — for example, you suffered serious financial losses or physical harm — you might recover more by pursuing your own lawsuit.
2. The Settlement Amount Is Too Low
Sometimes class action settlements are criticized as being too favorable to the defendant. If you believe the settlement undervalues your claim, opting out preserves your right to seek a larger recovery on your own.
3. You Want to Control Your Own Case
In a class action, the lead plaintiffs and class counsel make decisions for the entire class. If you want to choose your own lawyer, control the legal strategy, and negotiate your own settlement, opting out is the way to do that.
4. An Attorney Has Advised You to Opt Out
Some personal injury and employment attorneys actively seek out class members with strong individual claims and recommend that they opt out to pursue a separate case. This is common in mass tort situations where individual injuries vary widely.
Why Would Someone Stay in the Class?
For most people, staying in the class action makes sense because:
- It costs you nothing. Filing a claim is free, and the attorneys are paid from the settlement fund, not out of your pocket
- You do not have to do much. The lawyers handle everything. You just fill out a claim form
- An individual lawsuit is expensive and risky. Hiring your own attorney, going through discovery, and potentially going to trial can cost tens of thousands of dollars with no guarantee of a better outcome
- The payout, while smaller, is guaranteed once the settlement is approved
How Do You Opt Out?
The class action notice you received will include specific instructions for opting out. Typically, you need to:
- Write a letter stating your name, address, and that you wish to be excluded from the settlement
- Reference the case name and number as provided in the notice
- Mail the letter to the address specified in the notice by the exclusion deadline
- Some settlements now allow you to opt out online through the settlement website
The deadline to opt out is strict. If you miss it, you will be included in the class regardless of your preference.
What Happens If You Do Nothing?
If you do not opt out and do not file a claim, you are still part of the class. This means:
- You give up your right to sue the defendant individually for the claims covered by the settlement
- You do not receive any payment because you did not file a claim
- You get the worst of both outcomes — you lose your legal rights and get no money
This is why it is important to either file a claim or opt out — doing nothing is almost always the worst option.
Can You Opt Out and Then Change Your Mind?
Generally, no. Once you submit an exclusion request and the deadline passes, your decision is final. You cannot opt back in to receive a settlement payment later. Similarly, once the opt-out deadline passes, you cannot opt out even if you change your mind about the settlement.
Opting Out vs. Objecting
These are different things. Opting out means you leave the class entirely and keep your right to sue. Objecting means you stay in the class but tell the court you disagree with the settlement terms. An objector can still receive a payment if the settlement is approved over their objection.
The Bottom Line
Most class members are better off staying in the class and filing a claim. Opting out only makes sense if you have significant individual damages that far exceed what the settlement offers and you are prepared to pursue your own lawsuit. If you are unsure, consult with an attorney who can evaluate whether your individual claim justifies the cost and risk of going it alone.
Learn more about opting out of class actions on OpenClassActions.com.
By Steve Levine | Published: February 17, 2026
Legal Disclaimer
This article is for informational purposes only and does not constitute legal advice. If you are considering opting out of a class action, consult with a qualified attorney who can evaluate your specific situation. OpenClassActions.org is a consumer news site and is not a law firm.