What a class action is
A class action is a lawsuit where one or more people (the class representatives) sue on behalf of a larger group with similar claims (the class). In federal court the rules are in Federal Rule of Civil Procedure 23; state courts have their own similar rules. Many of the consumer and privacy settlements we list are in state courts.
The usual steps in a settlement
- Settlement and preliminary approval. The parties agree on terms and ask the court to approve them. A settlement that binds class members can only be approved after a hearing and a finding that it is "fair, reasonable, and adequate" (Rule 23(e)(2)).
- Notice. The court directs notice to the class. For damages classes, Rule 23(c)(2)(B) calls for "the best notice that is practicable," including individual notice to members who can be identified with reasonable effort, by mail, electronic means, or other appropriate means. The notice must explain, in plain language, the class definition, that you can ask to be excluded, how to do it, and that a judgment binds members who don't exclude themselves. The Federal Judicial Center publishes model plain-language notices courts can use.
- Claim period. An official settlement website run by a court-appointed settlement administrator posts the notice, the claim form, key documents, and deadlines. You file a claim there if a claim is required.
- Opt-out and objection deadlines. You can ask to be excluded (opt out) or stay in and object. These deadlines are often earlier than the claim deadline. See Opt out vs. object.
- Final approval (fairness) hearing. The court decides whether to approve the settlement and class counsel's fee request. Class members may object to the fee motion (Rule 23(h)).
- Appeals, then payment. Payments are generally made only after final approval and after any appeals are resolved. See How long payouts take.
Do I have to file a claim?
It depends on the settlement. Some pay certain people automatically; others pay only people who file. For example, the official Amazon return-policy settlement FAQ says Subclass A members are paid automatically, while Subclass B members must file a claim (official FAQ). The Knott's / California's Great America fee settlement gives an $8 credit to members who do nothing, or $8 cash to members who file a claim (official FAQ). Always read the notice for your settlement.
How payment amounts are set
Many settlements create a fixed fund. Court-approved costs (administration, attorneys' fees, service awards) come out first, and the rest is split among valid claims, so the amount per person often depends on how many people file. That is why official sites use words like "pro rata" or "up to." Some list fixed amounts or caps instead.
Where to file
Only on the official settlement website named in the court-approved notice. You don't need to pay anyone to file. Our free checker links straight to the official sites.