What is opt-out?
Opting out is the formal act of removing oneself from a class action, usually by mailing or submitting a written request before a court-set deadline. A person who opts out gives up any right to money from that class settlement or judgment but keeps the right to sue the defendant individually over the same conduct.
Opt-out rights exist only in certain types of class actions — mainly those seeking money damages under Federal Rule 23(b)(3) — and the deadline appears on the class notice, often 60 to 90 days before a fairness hearing. Missing the deadline generally locks a person into the class automatically; class membership by default is the norm, and no action is required to stay in and receive a payment if the case settles. Opting out is typically considered only when someone believes an individual lawsuit would be worth more than a class recovery.
Sources
Last reviewed 2026-08-22.