What is a class action opt-out?

A class action opt-out is a process that allows members of a class action lawsuit to separate from the group and file a separate lawsuit against the defendant instead of being part of the collective suit. This process is beneficial to members of the class action who may have a unique issue or claim that is not shared with the other members of the class. In New York, if a class action is filed, the members of the class receiving notice of the lawsuit are then given the option to opt-out of the suit. A class action opt-out enables parties to seek a more customized solution to the dispute, as well as to potentially recover a higher amount of damages. When the opt-out is provided by the court, members of the class are generally given a specified period of time to separate themselves from the suit and take other steps to pursue an individual claim. The opt-out process is an important one for those who have unique damages that may not accurately be reflected in the terms of the class action settlement. When a class member opts-out of a class action lawsuit, they will have the opportunity to pursue a more individualized legal action against the defendant. However, opting-out of the class action will also mean that the class member will no longer benefit from whatever settlement or verdict is obtained by the other members of the class.

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What is a class action opt-out?

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