Release of claims
A release of claims is the promise class members make, by staying in a settlement, not to sue the company again over the issues the deal covers.
Also called: release, settlement release, released claims
A release of claims is the promise class members make, by staying in a settlement, not to sue the company again over the issues the deal covers.
What it means
A release of claims is the part of a settlement where people give up the right to sue over certain issues. In a class action, the release covers every class member who does not opt out. It is what the company gets in exchange for the money and other terms in the deal.
The settlement agreement defines exactly what is released. Many releases cover claims based on the conduct described in the lawsuit during the class period. Some are wider and reach related claims that were never in the complaint. The notice should summarize the release in plain language, and the full wording is in the settlement agreement.
When the judge grants final approval, the judgment binds the class. Many settlements make the release take effect on the effective date. After that, a released claim cannot be brought again, even if you never filed for a payment.
What it means for you
The release is one of the most important parts of a notice to read, because it decides what you can no longer do. If you stay in the class, you give up the covered claims whether or not you file a claim. If you have a bigger or different claim, such as an injury or large losses, check whether the release covers it.
You can opt out before the deadline to avoid the release. Courts also watch for releases that reach too far. If one seems too broad, you can raise it in an objection.
Example
Say a settlement resolves claims that a ride app hid a service fee from riders between 2022 and 2024. In this deal, the release covers any claim that the fee was misleading or unlawful during that period. A rider who stays in the class cannot later sue over those fees. The release does not cover a separate claim, such as one about an accident during a ride, because that was not part of the case.
FAQ
Yes, if you stay in the class. You are bound by the release whether or not you file, unless you opt out before the deadline. Filing a claim is what makes you eligible for a payment.
Only if the settlement says so. The agreement lists who is released, and that can include related companies or people beyond the defendant. Read the definition of the released parties in the long-form notice.
Related terms
- Federal Rule of Civil Procedure 23, class actions (Cornell LII)
- 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.