Opt-out (request for exclusion)
An opt-out, or request for exclusion, is a class member's written choice to leave a class action, keeping the right to sue alone but giving up any payment.
Also called: opt out of a class action, request for exclusion, exclusion request
An opt-out, or request for exclusion, is a class member's written choice to leave a class action, keeping the right to sue alone but giving up any payment.
What it means
An opt-out, formally called a request for exclusion, is how a class member leaves a class action. If the court accepts it, you are no longer part of the class. You get no payment from the settlement, the release does not apply to you, and you keep whatever right you have to bring your own claim.
In federal class actions that seek money damages, Rule 23(c)(2)(B) requires the notice to explain how and when to ask for exclusion and what happens to people who stay in. You usually opt out by sending a signed written request to the address in the notice before the deadline. Some settlement websites accept an online request. State courts have their own class action rules, so details can differ.
Not every class gives you this right. A court is not required to offer an opt-out in a class that seeks only a court order, such as a change in business practices. And once you opt out, you can no longer object to the settlement.
What it means for you
People usually consider opting out only when their own losses are much larger than what the class would pay them, or when they already have a separate case against the company. For most small consumer claims, opting out means giving up a likely payment for a legal fight that may cost more than it returns. The notice sets the deadline, usually a month or more after notice goes out, and a late request may not count.
Once the deadline passes, it is hard to change your mind. If you are unsure, a short talk with a consumer lawyer before the deadline can help. This is general information, not legal advice.
Example
Say a class member lost a large sum to fraud after a data breach, far more than the settlement would reimburse. She decides she would rather pursue the company herself. Before the deadline in the notice, she mails a signed request for exclusion with her name and address. She will receive nothing from the settlement and is not bound by its release. Her neighbor, who lost nothing, stays in the class and files a claim instead.
FAQ
Follow the instructions in the notice. You usually sign a written request with your name, address and the case name, and send it to the listed address by the deadline. Some settlements also offer an online form.
Very few. An FTC staff study of consumer class action settlements found that, on average, about 0.01% of notice recipients asked to be excluded.
Related terms
- Federal Rule of Civil Procedure 23, class actions (Cornell LII)
- Manual for Complex Litigation, Fourth, sections 21.321 and 21.643 (Federal Judicial Center)
- Managing Class Action Litigation: A Pocket Guide for Judges, 3d ed. (Federal Judicial Center, 2010)
- FTC staff report, Consumers and Class Actions: A Retrospective and Analysis of Settlement Campaigns (2019)
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.