Opt out
Opting out means formally removing yourself from a class action settlement, which gives up your right to any payment but keeps your right to sue the defendant yourself.
You have to do it in writing, before a stated deadline, in the way the notice describes. Missing the deadline means you stay in the class whether you wanted to or not.
It is the right move only in narrow circumstances: when your own losses are far larger than the settlement would pay, and large enough to justify hiring a lawyer. For most people, in most settlements, opting out means walking away from money and gaining nothing usable.
Opting out is not the same as objecting. An objector stays in the class and tells the judge the deal is unfair; an opt out leaves the class entirely.
Related terms
Class action settlement
A class action settlement is an agreement that ends a lawsuit brought on behalf of a large group of people, where the defendant pays into a fund that group members can claim from without suing individually.
Final approval
Final approval is the decision by a judge, after a fairness hearing, that the settlement is fair and can take effect. Payments follow once any appeals are resolved.