Substantial claimants frequently exclude themselves from a class and pursue individual actions, which changes the defendant’s exposure calculation.
Opt-out rights exist in classes certified predominantly for damages. There is no opt-out right in classes certified for injunctive relief or on limited fund grounds, which is why certification type is heavily contested.
Blow provisions. Class settlements commonly permit the defendant to terminate if opt-outs exceed a threshold, kept confidential in a side agreement that must nonetheless be disclosed to the court.
Mass actions. Groups of individually filed cases coordinated informally or formally, avoiding class certification requirements while achieving aggregate pressure. Removal statutes address mass actions where a threshold number of plaintiffs propose joint trial.
Tolling. The filing of a class action tolls the limitation period for absent members’ individual claims, though not for a successive class action after certification is denied.
Strategic considerations for defendants. A class settlement resolving the small claims plus individual negotiations with substantial claimants is a common structure, and the sequencing matters — settling the class first removes leverage from the opt-outs, and settling with them first can signal value.