How to Opt Out of a Class Action Settlement
🕑 2 min read·443 words
By Timo Bakker · July 3, 2026 · 5 min read
Opting out of a class action settlement means you formally remove yourself from the class. You get zero from the settlement, but you preserve your right to sue the company individually. Here is when to do it and how.
When to opt out
- Your actual harm was much bigger than the settlement offers. Data breach caused you $20,000 in fraud losses but the settlement caps individual payout at $500? Opting out and suing individually can be worth it.
- You have a strong individual case. You have documentation, willingness to hire your own lawyer, and time for a multi-year individual lawsuit.
- You have already suffered specific quantifiable damages. Not just "my data might have been used" — actual dollar losses.
How to opt out (the actual steps)
- Find the opt-out instructions in the settlement notice. Every notice includes exact instructions, an opt-out deadline, and a mailing address.
- Write an opt-out letter. Must include: your full name, current mailing address, phone number, the case name and number, and a clear statement "I request to be excluded from the settlement class."
- Sign the letter personally. Typed name is not sufficient — must be your handwritten signature.
- Mail it before the opt-out deadline. Postmark date counts, not received date. Use USPS Certified Mail so you have proof.
- Keep a copy of everything. Your letter, the postmark receipt, tracking number.
Common mistakes
- Doing nothing thinking that means you opt out. No — doing nothing means you are IN the settlement (bound by it, no payout).
- Missing the opt-out deadline. Deadlines are typically 30-60 days after notice. Miss it and you cannot opt out.
- Emailing the opt-out instead of mailing. Most settlements require paper mail with signature. Email opt-outs get rejected.
- Signing multiple opt-outs. If you and your spouse are both class members, each must send an individual opt-out. One letter covers one person.
After opting out
You are on your own. You can now sue the company individually, join a different lawsuit against the same conduct, or do nothing (in which case you get zero and cannot claim later).
Most consumers with typical small harms find it makes more sense to file the class action claim rather than opt out. See our guide on what happens if you do nothing.