Claimants who decline the class and litigate individually.
Esshaki Legal Media TeamCurrent as of April 2025
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.