How to opt out of a class action lawsuit: Step-by-step guide

Most class action lawsuits automatically include you as a class member if you meet the criteria for the case. You don’t have to file anything, hire a lawyer, or spend time chasing paperwork.

But automatic inclusion also means you’re bound by the outcome, whether it’s good or bad.

Luckily, most class actions give you the right to opt out, allowing you to withdraw from the case altogether.

This guide shows you how to opt out of a class action lawsuit step by step and explains when using that right makes sense and when it doesn’t.

Key takeaways

Opting out lets you avoid being bound by the class action’s outcome
If you opt out, the court’s judgment or settlement no longer applies to you. This gives you the freedom to pursue your own lawsuit, negotiate directly, or take no action at all.
You only have a guaranteed opt-out right in certain types of cases
Rule 23(b)(3) money-damages class actions must offer opt-out rights. Other types, like (b)(1) and (b)(2), generally do not. Your ability to opt out depends entirely on how the class is certified.
Opting out requires following strict, time-sensitive steps
You need to review the class notice, meet the exclusion deadline, follow the exact instructions, submit the request properly, and keep proof of receipt. Missing even one step can leave you stuck in the lawsuit.
Opting out makes sense when your claim is unique or potentially higher-value
Choosing your own lawyer, having your individual circumstances considered, and avoiding diluted payouts are all valid reasons for pursuing your own case instead of staying in the class.
A tool like Settlemate helps you avoid missed deadlines and lost claims
Settlemate tracks relevant class actions, alerts you to opt-out windows, organizes your documents, and speeds up claims when you choose to stay in the class. It keeps you informed and on track so you can protect your rights without the stress.

What it means to opt out of a class action lawsuit

Opting out means removing yourself from the class action so you’re not bound by its outcome. You keep the right to pursue your own lawsuit, negotiate independently, or walk away entirely.

However, the right to opt out isn’t guaranteed. It depends entirely on how the court certifies the class under Rule 23 of the Federal Rules of Civil Procedure. The table below shows what that means in practice.

Rule 23 category	Type of case	The right to opt out	Reasoning	Note
Rule 23(b)(1)	Cases where individual lawsuits would create inconsistent rulings (e.g., fiduciary, pension and shareholder cases)	No automatic opt-out	Courts avoid opt-outs because they defeat the purpose of resolving a single, uniform issue.	Some courts allow opt-outs in (b)(1) cases when excluding a member wouldn’t undermine consistent results.
Rule 23(b)(2)	Cases seeking injunctive or declaratory relief (policy changes, civil rights, etc.)	No automatic opt-out	Opt-outs aren’t permitted because the remedy applies to the whole group at once. Allowing exclusions would undermine the relief.	Certain courts allow opt-outs in (b)(2) cases when individual fairness concerns outweigh the need for unified relief.
Rule 23(b)(3)	Money-damages class actions	Yes (opt-out is required)	Rule 23(b)(3) explicitly gives all class members the opt-out option to protect individual rights.	Some state class-action rules don’t automatically grant opt-out rights in (b)(3) cases, even when federal rules would.

How to opt out of a class action lawsuit: 7 steps to take

There are no automatic opt-out options, and starting another class action won’t opt anyone else out of the current one. Also, this is a strictly individual process, which means only you can opt yourself out.

Here’s how.

Step 1: Wait for the official class action notice

To opt out of a class action lawsuit, you first need to know the lawsuit exists. That only happens when the court certifies the class and legally requires notice to be sent to everyone who may be a class member.

The class action notice will tell you that you’re included in the class, that you may have the right to opt out, and exactly how and when to do it.

The essential parts to look for include:

A summary of the lawsuit: This outlines the claims and what it means for you if you stay in the class or opt out.
The opt-out deadline: It tells you the exact date your request must be received. Missing this date keeps you in the case.
Instructions for opting out: This part explains how to submit your exclusion and where to send it.
Contact details for the claims administrator: These inform you of the official point of contact if you need clarification.

Although this first step sounds simple, there are some real-world issues that can get in the way.

For instance, some classes are so massive that reaching every member directly is nearly impossible.

The Schlesinger v. Ticketmaster case is a great example, given that an estimated 50 million Ticketmaster customers were eligible for the settlement, yet many never saw the notice at all.

Even when people do receive the notice, they often don’t understand their opt-out rights.

That’s why relying on the notice alone isn’t enough. Instead, you should consider using a tool like Settlemate, which tracks class actions for you and alerts you when you’re included. This prevents you from accidentally missing a deadline you never knew existed.

Step 2: Confirm the opt-out deadline

There is one piece of information you should pay special attention to if you plan to opt out: the exclusion deadline.

This is the date by which your opt-out request must be received, or you will stay in the lawsuit automatically. The “received” part is crucial because the court goes by when the request actually arrives, not when you wrote it or dropped it in the mail.

Courts enforce this deadline—miss it, and you lose the right to bring your own case, no matter how strong your claim is.

If you didn’t receive the notice, you can usually find the opt-out deadline through one of these sources:

The settlement website
The claims administrator’s website
Public court filings
A class-action tracking tool

Step 3: Review the opt-out instructions

The opt-out instructions are another part of the notice you should read carefully since courts expect you to follow them exactly. If you don’t, your opt-out may be rejected.

The instructions typically tell you:

How to opt out – whether you must mail a form, submit a written request, or use an online portal
What information to include – usually your name, address, signature, and a clear statement that you’re opting out
Where to send your request – the correct mailing address, email address, or submission site
What are the formatting or documentation requirements – the specific way your request must be structured, or the documents you must include

Step 4: Prepare your opt-out request

You’ll usually have two ways to opt out: completing the opt-out form included in the notice or writing your own exclusion letter.

The form is easier because it tells you exactly what information to provide and where to send it. You just fill it out, sign it, and submit it by the deadline.

If you need to write a letter instead, here are a few best practices to keep it straightforward:

Be concise: State clearly that you are opting out, and include only the required details.
Use a professional tone: Treat it as a legal document and avoid casual language.
Include identifying information: The letter should contain your full name, address, and any class member ID if provided.
Reference the case clearly: List the case name, court, and case number to avoid misrouting.
Sign and date the letter: Unsigned requests can be rejected.

Step 5: Submit your opt-out request

Once your opt-out form or letter is ready, it’s time to submit it. The exact destination will depend on the instructions outlined in the notice.

Here are a few examples of what those instructions might look like:

“Mail your opt-out form to: [Administrator Address].”
“Email your signed exclusion request to: [Administrator Email].”
“Submit your opt-out through the online portal at: [Website].”

Whatever the method, the rule is the same: do exactly what the notice says, and do it on time.

Step 6: Keep proof of delivery

If you’re mailing your opt-out request, use a trackable delivery method—certified mail or an equivalent service gives you proof that it arrived on time.

For email or online submissions, save everything:

A copy of your sent email or upload confirmation
Any automated receipt from the administrator
Screenshots showing the date and time submitted

If there’s ever a dispute about whether you opted out, this is the evidence that protects you.

Step 7: Confirm your exclusion

Some administrators send a confirmation once your opt-out is processed, but not all do.

If you don’t receive one, rely on your proof of delivery and check the settlement website or administrator’s page for updates. Make sure your exclusion was received and recorded so you’re not pulled back into the case.

When opting out of a class action makes sense

Sometimes, you simply don’t want to be part of the lawsuit at all. Maybe you don’t care about the issue, you believe no real harm was done to you, or you disagree with the way the case is being pursued. All of the listed reasons are valid.

However, opting out isn’t just about removing yourself. It also protects your right to pursue your own claim and avoid being locked into a settlement that doesn’t reflect your actual losses.

Here are the main advantages of pursuing an individual lawsuit instead of staying in the class:

You keep full control over your case.
Your unique circumstances are actually considered by the court.
You avoid sharing damages with thousands or even millions of other people.
You can seek higher compensation if your losses are significant.
You’re not bound by a settlement negotiated by lawyers you never hired.

When staying in the class action is the better choice

Not every case calls for an individual lawsuit.

Sure, an ultra-specific claim, such as a video game addiction lawsuit where your personal injuries are unique and potentially high-value, might justify going your own way. However, broad cases, like hidden fee disputes or data breaches, are usually far better suited for the class action system.

After all, filing an individual lawsuit comes with a whole set of burdens, including:

More time: You have to hire a lawyer, gather evidence, and actively manage your case.
Higher costs: Individual litigation often involves lawyer fees, expert costs, and other expenses that class members avoid.
Greater complexity: You carry the full burden of proving your claim against a well-funded defendant.

For many people, staying in the class is the safer, simpler path.

How Settlemate protects your right to opt out (or get paid)

After figuring out how to opt out of a class action lawsuit—or whether you even should—you still need a way to stay organized and protect your rights.

Whether you plan to opt out or stay in the class and collect what you’re owed, Settlemate makes sure you never miss a deadline or lose a claim because of paperwork or timing.

Here’s how Settlemate helps you stay in control:

Clear eligibility checks: Settlemate reviews active settlements and shows you which cases apply to you so you can quickly compare your options.
Deadline monitoring you can trust: Settlemate watches the opt-out calendar and gives you advance notice when it’s time to act.
Organized case materials: Every notice, document, and update lives in one place, so you’re not searching through email or mail for critical information.
Streamlined class claims: If you decide to remain in the class, Settlemate can prepare and submit your claim details with your approval, speeding up the process.
Guidance when decisions get serious: For big or complicated claims, Settlemate flags when it may be wise to speak with a lawyer, while it continues to manage the paperwork and alerts.

Get the Settlemate app on App Store or Google Play and never miss an opt-out deadline or payout opportunity again.