What Is a Class Action Lawsuit and How Do You Join One?

A class action lawsuit is a case in which one or a few people sue on behalf of everyone harmed in the same way, and the result binds the whole group. In a typical consumer class action, you don't have to join: you're in unless you opt out. To get paid, you usually file a claim form.

This article is general legal information, not legal advice. Laws vary by state and situation, and reading it does not create an attorney-client relationship. For advice about your case, talk to a licensed attorney.

Do you have to do anything to be in a class action?

Usually not. Once a class is certified, everyone who fits its definition is a member, whether or not they've heard of the case. In a Rule 23(b)(3) class, the judgment covers every member the notice was directed to who didn't ask to be excluded, so staying in takes no paperwork.

Getting paid is a separate step. In a 2019 FTC staff study of 149 consumer class action settlements, 107 required every class member to file a claim to get anything; 21 paid everyone automatically. Where claims were required, the median claims rate was 9 percent, so most people who got a notice never filed.

When a notice reaches you, you can:

• File a claim by the deadline. You stay in and get paid if the claims administrator approves it (about 86 percent were approved in the FTC sample).
• Do nothing. You're still bound by the settlement, and if it requires claims, you get nothing.
• Opt out. The settlement can't bind you or pay you, and you keep the right to bring your own case.
• Object. You stay in and tell the judge what's wrong with the deal. Rule 23(e)(5) requires you to say whether the objection covers only you, part of the class or all of it, and to give specific reasons.

What is a class action lawsuit under Rule 23?

In federal court, Federal Rule of Civil Procedure 23 decides whether a case can go forward for a group. Under Rule 23(a), the judge must find that the class is too large for everyone to join individually, that members share common questions of law or fact, that the named plaintiffs' claims are typical of the class, and that those plaintiffs will fairly and adequately protect everyone else.

The case must also fit one of three types in Rule 23(b), and the type decides whether you can leave. The rule promises no opt-out in a (b)(1) class (where separate suits could produce conflicting rulings) or a (b)(2) class (where the court is asked for an order, such as an injunction, covering the whole group), and notice to those classes is up to the judge.

A (b)(3) class needs more. Common questions must predominate over individual ones, and a class action must be a better method than separate suits. The court must send the best notice practicable, including individual notice to every member who can be identified with reasonable effort. The notice must explain, in plain language, how and by when to ask for exclusion.

Everything else (discovery, motions, trial) runs much like any civil suit, which our guide to how civil lawsuits work in the U.S. explains.

## Opt out or opt in: what's the difference?

Rule 23 cases are opt-out: you're in unless you leave. Wage cases under the federal Fair Labor Standards Act work the other way. Workers can sue for unpaid minimum wage or overtime on behalf of "similarly situated" coworkers in a collective action, but under 29 U.S.C. 216(b) nobody is a party until their written consent is filed with the court.

That shows up in your deadline. In an FLSA collective action, your claim counts as filed only on the day your consent is filed (29 U.S.C. 256), and the time limit is two years, or three for a willful violation (29 U.S.C. 255). Every week before your consent is filed counts against you.

In opt-out cases, the Supreme Court held in Crown, Cork & Seal Co. v. Parker (1983) that filing a class action pauses the statute of limitations for everyone in the proposed class until certification is denied. The pause has limits, and state courts apply their own rules, so if you're opting out to sue on your own, work out your deadline first. Our Statute of Limitations Checker shows your state's general deadline for claims such as product liability and breach of a written contract.

How does a settlement move from notice to payment?

Under Rule 23(e), a class settlement can't bind anyone until a judge approves it after a hearing. In federal court, the Class Action Fairness Act adds two clocks: each settling defendant must notify the appropriate federal and state officials within 10 days after the proposed settlement is filed, and final approval can't come sooner than 90 days after the last official is served (28 U.S.C. 1715). For a settlement filed March 1 with officials served March 11, the earliest possible final approval date is June 9.

Stage	What happens	What you can do
Settlement filed	The judge gets the deal; officials are notified within 10 days.	Nothing yet.
Preliminary approval	Notice goes out if the deal and the class look likely to be approved (Rule 23(e)(1)).	Note the claim, opt-out and objection deadlines.
Claims period	The administrator collects claims and opt-outs; class counsel's fee request goes to the class (Rule 23(h)).	Claim, opt out, or object to the deal or the fees.
Final approval hearing	The judge rules on whether the deal is fair, reasonable and adequate.	Check the settlement website for the ruling.
Appeals and payment	An appeal can delay payment; then approved claims are paid.	Cash or deposit the payment promptly.

Under Rule 23(e)(2), the judge weighs how well the class was represented, whether the deal was negotiated at arm's length, whether the relief is adequate (counting the risks of trial, the claims process and the fees), and whether members are treated fairly relative to each other. If the class was certified earlier and you skipped the first chance to opt out, the judge can insist on a second one (Rule 23(e)(4)).

State courts hear class actions under their own rules. California's Rule of Court 3.769, for example, requires a hearing notice that explains how to object and a fairness inquiry before judgment.

## How can you tell a real settlement notice from a scam?

Real notices come by mail or electronically (Rule 23 expressly allows electronic notice), so how a message reached you proves little. Before you click or share anything:

1. Find the court and the case number. A message promising money with no court named is a warning sign.
2. Look the case up yourself. For a federal case, use the PACER Case Locator (pcl.uscourts.gov). PACER charges $0.10 a page, capped at $3 per document, and waives fees for any quarter in which you spend $30 or less. For a state case, use that court's online case search or call the clerk.
3. Compare the notice with the court file. The parties should ordinarily give the judge a copy of each notice they plan to use (the committee note to Rule 23's 2018 amendments says so), so the version the judge approved is often filed in the case. If you find it, check that the website, phone number and deadlines match.
4. Type the settlement website's address yourself. These sites are usually run by a private claims administrator rather than the court, so the web address alone tells you little; make sure the court file or the approved notice names that exact site.
5. Never pay to get paid. The FTC says legitimate organizations never ask for money to help you get a refund, and it flags any "processing fee" or "administrative charge." Anyone insisting on gift cards, cryptocurrency, a wire transfer, cash or a payment app is a scammer.
6. Guard your numbers. Don't give a Social Security number or bank details to someone who contacted you first. A "refund" check for more than you lost, with a request to return the difference, is always a scam.

Report a fake at ReportFraud.ftc.gov and to your state attorney general.

When a lawyer is worth calling about a class action

Get advice before the opt-out deadline if you were seriously hurt, if your losses dwarf what the settlement pays per person, or if you're thinking of objecting. In a wage case, call as soon as a consent form arrives, because your clock runs until it's filed.

If no class action covers what happened to you, a lawyer can say whether you have a claim of your own. You can find a civil litigation lawyer near you in our directory and check rough filing deadlines with the Statute of Limitations Checker.

Frequently asked questions

How much money do you get from a class action settlement?

It depends on the settlement's formula, how many people file and sometimes the proof you can show. In the FTC staff's 2019 study of consumer settlements that required claims, the median payment was $69 or more in half of them and $200 or more in a quarter. The notice or settlement website explains the formula.

Can you be in a class action without knowing it?

Yes. If you fit the class definition, you're a member, and in a Rule 23(b)(3) case you're bound by the result unless you opt out. Notice doesn't reach everyone, so if you hear about a settlement late, check its website for deadlines that are still open.

Do you need a lawyer to join a class action?

No. The court appoints class counsel under Rule 23(g) to represent the whole class, and you can file a claim form yourself. You may hire your own lawyer to appear for you. The judge sets class counsel's fees under Rule 23(h), and any class member can object to the amount requested.

What happens if you miss the claim deadline?

In a settlement that requires claims, missing the deadline generally means no payment, and you're still bound by the settlement because you didn't opt out. If the notice reached you too late, ask the administrator named in the court file what options remain.