Members of a Rule 23(b)(3) class must be given the opportunity to request exclusion, preserving their right to pursue individual claims. The notice must explain the right and the deadline.
Rule 23(b)(1) and 23(b)(2) classes are mandatory and carry no opt-out right.
Alternative Names:
Right to Opt Out, Exclusion Right
Why it Matters?
Opt-out rates are the metric that determines whether a class settlement achieves peace, and high rates signal either that individual claims have substantial value or that plaintiff firms are soliciting exclusions to pursue them separately. Settlement agreements frequently include a threshold permitting the defendant to withdraw if exclusions exceed a specified level, which serves the same function as a walk-away provision in mass tort resolution.
Frequently Confused with
Related terms
Frequently asked questions
Which classes carry opt-out rights?
Why do opt-out rates matter?
