What is a class action opt-out?

A class action opt-out is a situation where an individual can choose not to participate in a class action lawsuit that involves a large group of people who have similar legal claims. In California, if a class action lawsuit has been filed, all named plaintiffs must receive a notice in the mail explaining their right to opt-out of the class action. This notice provides the plaintiff with the deadline to opt-out, as well as information on how to do it. In order to opt-out of a class action, the individual should notify the attorneys representing either side of the lawsuit in writing that they wish to be excluded from the class action. If the opt-out request is received before the opt-out deadline, the individual will not be considered part of the class action and will no longer be bound by any rulings or decisions in the case. Opting out of a class action lawsuit can be beneficial to individuals because it allows them to pursue an individual claim and possibly receive a larger individual settlement than if they stayed in the class action. However, opting-out may also be risky as an individual may not necessarily receive a financial benefit from the individual lawsuit, and may end up spending more in attorney fees than they would have if they had stayed in the class action.

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What is a class action opt-out?

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