A class of opt-out refers to a collective of individuals with a shared legal stance who are authorized under Federal Rule of Civil Procedure 23(b)(3). Individuals in this class have the option to remove themselves if they do not wish to be obligated by the decisions or agreements made in the case. This allows them to wait until the terms of the settlement are disclosed before making a decision to opt out. Settlement classes are comparable to opt-out classes, but they entail a contract outlining the payment terms for the claims of class members in exchange for relinquishing all claims against the opposing party.
An opt-out class is a plaintiff class certified under Federal Rule of Civil Procedure 23(b)(3) that allows members to choose whether or not they want to be bound by decisions or settlements reached in the case. Rule 23(e) permits courts to dismiss class members who request exclusion, and members may wait until the settlement’s terms are announced before choosing to opt out. For example, in a discrimination lawsuit against a company, the opt-out class would include all the plaintiffs suing the company, with each plaintiff having the option to exclude themselves from the class. Another example is a settlement class, which includes similarly situated people for whom a claimant’s representative and an adversary propose a contract specifying payment terms for the class members’ claims in exchange for the release of all claims against the adversary. In the 1980s and 1990s, mass-tort defendants began using settlement classes to foreclose claims by existing and future claimants.
An opt-out class action lawsuit is a legal proceeding in which a group of individuals who have suffered similar harm or injury can collectively sue a defendant. However, unlike a traditional class action lawsuit, individuals have the option to opt-out of the lawsuit and pursue their own individual claims.
To opt-out of a class action lawsuit, you must follow the instructions provided in the notice you received about the lawsuit. Typically, you must submit a written request to the court or the law firm representing the plaintiffs.
Opting-out of a class action lawsuit allows you to pursue your own individual claim and potentially receive a larger settlement or award. It also gives you more control over the outcome of your case.
Opting-out of a class action lawsuit means that you will not be bound by any settlement or judgment reached in the case. This means that you may have to pursue your own legal action, which can be time-consuming and expensive.
Generally, no. Once the deadline for opting-out has passed, you are bound by the outcome of the lawsuit.
Opt-out class action lawsuits are often used in cases involving consumer fraud, product liability, and securities fraud.
You should review the notice you received about the lawsuit and consult with an attorney to determine if you are eligible to opt-out.
No. If you opt-out of a class action lawsuit, you cannot participate in the lawsuit or receive any settlement or award that may be reached.
The length of time it takes to resolve an opt-out class action lawsuit varies depending on the complexity of the case and the number of plaintiffs involved.
While you are not required to have an attorney to opt-out of a class action lawsuit, it is recommended that you consult with an attorney to ensure that you understand your rights and the potential risks and benefits of opting-out.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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