How to Opt Out of a Class Action Lawsuit?(Steps, Deadline & Letter)

To opt out of a class action, follow the exclusion instructions in your official class notice and submit your request before the deadline stated there. Depending on the case, that may mean an online form or a signed letter mailed to the settlement administrator. You do not need to file your own lawsuit just to opt out.

Opting out has real consequences. You generally give up any payment from the class settlement, but you keep the right to bring your own claim. This guide covers the steps, a sample exclusion letter, what you give up, and when opting out makes sense.

Quick Facts: Opting Out of a Class Action

Question	Short answer
Who has a right to opt out?	Members of a Rule 23(b)(3) class (most money-damages class actions)
Is there one federal deadline?	No. The deadline is in your notice and court orders
Where do I send the request?	Where the notice says, usually the settlement administrator
Online, mail, or both?	Depends on the case. Follow the notice exactly
Does it cost anything?	Rule 23 sets no fee for requesting exclusion
Do I still get settlement money?	Generally no
Can I still sue on my own?	Generally yes, subject to deadlines and other defenses
Is objecting the same as opting out?	No

What Does Opting Out of a Class Action Mean?

Opting out (also called “requesting exclusion”) means asking the court to remove you from the class. Under Rule 23(c)(2)(B), the notice to a Rule 23(b)(3) class must explain that the court will exclude anyone who asks, and must state the time and manner for doing so.

The reason it matters is the binding effect. If you stay in the class, you are generally bound by the judgment or settlement, including a release of the claims it covers. If you opt out, you are not bound, and you can pursue your own claim.

How to Opt Out: Step by Step

1. Find your official notice

Start with the notice you received by mail or email, or the official settlement website listed in it. Do not rely on a third-party summary for your deadline or method. If you lost the notice, search the case name on the settlement website or the court docket.

2. Confirm you are in the class

Check the class definition. It may depend on where you lived, when you bought a product, whether your data was involved, or which employer you worked for.

3. Find the exclusion section

Look for headings like “Exclude Yourself,” “Opt Out,” or “Request for Exclusion.” This section gives the deadline, the address or web form, and what your request must include.

4. Prepare your request

Some settlements have an online exclusion form. Others require a written, signed request by mail. Include exactly what the notice asks for. Typically that means:

• Your full name and current address
• The case name and case number
• A clear statement that you want to be excluded
• Your signature (and sometimes a phone number, email, or other identifying details)

5. Send it before the deadline

Check whether the notice says “postmarked by” or “received by” a date. If mailing, use a trackable method such as USPS Certified Mail with return receipt. Send it to the address in the notice, which is usually the settlement administrator rather than the judge or the lawyers.

6. Keep proof

Save a copy of your request, the mailing receipt or tracking number, and any confirmation email or screenshot. If anyone later questions whether you opted out, this is your evidence.

Related article: Do I Have to Pay to Join a Class Action Lawsuit? Costs, Fees & Taxes

Sample Opt-Out (Exclusion) Letter

Use this only as a template. If your notice requires specific wording or extra details, follow the notice instead.

[Your Full Name]
[Your Address]
[City, State ZIP]
[Phone / Email, if required]

[Date]

[Settlement Administrator Name]
[Address listed in the notice]

Re: [Case Name], Case No. [Case Number], [Court Name]

To Whom It May Concern:

I am a member of the settlement class in the above case. I request to be excluded from the settlement class. I understand that by doing so I will not receive any benefits under the settlement and will not be bound by it.

Sincerely,

[Signature]
[Printed Name]

Do You Have to Mail a Letter? Online vs. Paper

It depends on the case. Many settlements now accept online exclusion forms through the settlement website, while others still require a signed letter. Some accept both. Your notice controls, so don’t assume either method works unless it says so.

What Happens If You Opt Out?

You generally give up the settlement benefits. That could be a cash payment, a voucher, credit monitoring, or other relief.

You generally keep your right to sue. But opting out does not make an individual case easy. You must still prove your claim, meet filing deadlines, deal with any arbitration agreement, and pay for your own lawyer.

The statute of limitations clock

This point catches people out. Under the Supreme Court’s decision in American Pipe & Construction Co. v. Utah, 414 U.S. 538 (1974), filing a class action generally pauses (tolls) the time limit for class members’ claims while they are in the class. Once you opt out, that protection ends and your own deadline starts running again. Some deadlines, such as statutes of repose, may not be paused at all. If your claim is old, talk to a lawyer before you opt out.

Can You Opt Out After the Deadline?

Do not assume you can. Missing the deadline usually means you stay in the class and are bound by the result. There are limited exceptions. For a class that was already certified and later settles, Rule 23(e)(4) lets the court require a new opportunity to opt out before approving the settlement. If you missed the deadline, read the final orders and consider speaking to an attorney.

Opting Out vs. Objecting

	Opt out	Object
What you tell the court	“I don’t want to be part of this class”	“I’m in the class, but I think this settlement is unfair”
Are you bound by the settlement?	No	Yes, if it is approved
Do you get settlement money?	Generally no	Yes, if you are eligible and claim it
Can you still sue on your own?	Generally yes	No, for released claims

Under Rule 23(e)(5), an objection must state the grounds with specificity and whether it applies to you, part of the class, or the whole class. You generally cannot both opt out and object, because an excluded person is no longer affected by the settlement.

When Does Opting Out Make Sense?

Opting out can be worth considering if:

• Your individual losses are much larger than the likely class payout.
• You want to file your own case and are ready to fund and pursue it.
• The release in the settlement would give up claims you care about.

Staying in usually makes more sense when your loss is small, the settlement is reasonable, and an individual lawsuit would cost more than it could recover. Class settlements exist largely because individual claims are too small to be worth suing over.

Also weigh the cost. Individual lawyers often charge contingency fees in the range of roughly one-third or more of a recovery, plus expenses, and that varies by case and lawyer. By comparison, class counsel’s fees are court-approved and come out of the settlement. See our guide on whether you have to pay to join a class action.

Opting Out of a Class Action Against Your Employer

Not every group lawsuit against an employer is a Rule 23 class action. Many wage-and-hour cases are FLSA collective actions under 29 U.S.C. § 216(b). Those work the opposite way: you must opt in by filing written consent. If you do nothing, you are generally not part of the case. Check which type of case your notice describes, and note that state wage laws may have their own procedures.

Common Opt-Out Mistakes

• Missing the deadline. Send it early, not on the last day.
• Sending it to the wrong place. Use the address or website in the notice.
• Leaving out required information such as the case number or a signature.
• Confusing objecting with opting out.
• Expecting to keep the settlement payment after opting out.
• Assuming Rule 23 applies to a state-court case. State courts can have different rules.
• Using a generic template that ignores the notice’s requirements.

For examples of how different settlements handle claims and exclusions, see our coverage of the ModMed data breach settlement and the Call-On-Doc tracking pixel settlement.

When to Talk to a Lawyer First

Consider speaking with a licensed attorney before opting out if you:

• Have large individual damages
• Plan to file your own lawsuit
• May be close to a statute of limitations deadline
• Signed an arbitration agreement
• Have an employment or wage dispute
• Are unsure whether to opt out or object
• Have already missed the exclusion deadline

FAQ

Is there a fee to opt out of a class action?

Rule 23 sets no fee for requesting exclusion. Be cautious of anyone who demands payment to submit a basic opt-out request.

Can I opt out online?

Sometimes. Many settlement websites have an exclusion form. Others require a signed letter. Your notice will say which.

Can I opt out and still get the settlement money?

Generally no. Excluded members do not receive class settlement benefits.

What happens if I ignore the notice?

You generally stay in the class and are bound by the outcome, including the release of claims.

Can I opt out after the deadline?

Usually not, except in limited situations such as a new opt-out opportunity under Rule 23(e)(4) or where the court allows a late request.

Can I opt out and object at the same time?

Generally no. Objectors stay in the class. If you opt out, the settlement no longer applies to you.

Do I need a lawyer to opt out?

No. You can submit the request yourself. A lawyer is worth consulting if the stakes are high or a deadline is close.

Bottom Line

To opt out, follow the exclusion instructions in your official notice exactly, send the request before the deadline, and keep proof. Opting out generally means giving up the settlement payment in exchange for keeping your right to sue, and your time limit to sue starts running again. If your claim is large or time-sensitive, speak with a licensed attorney before the deadline.

Sources: Federal Rule of Civil Procedure 23 · 29 U.S.C. § 216(b) · American Pipe & Construction Co. v. Utah

Researched and written by Israr Ahmad, Legal Content Researcher. This article is for general information only and is not legal advice. AllAboutLawyer.com is not a law firm. Class action procedures vary by court, state, and claim; consult a licensed attorney about your situation.