Release of Claims
The legal waiver class members give up when they accept a settlement payment.
When you accept a class action settlement payment, you sign a release. The release means you cannot sue the defendant again for the same conduct covered by the settlement. The release is the defendant's main reason for settling. They pay to make the litigation, and the underlying risk, go away.
The scope of the release matters. A narrow release covers only the specific harm in the case. A broad release can cover related conduct, future similar claims, or claims you do not even know about yet. Always read the release before filing, especially if your harm is ongoing or if you suspect more harm may surface later.
If the release seems too broad relative to the payout, opting out is the only way to preserve future rights. Once you cash the check, the release binds you.
Related terms
Class Action
A lawsuit where one or a few plaintiffs sue on behalf of a larger group that suffered the same harm.
Settlement Administrator
The third party hired to manage notice, process claims, and distribute payments in a class action settlement.
Opt-Out
A formal request to be excluded from the class so you keep the right to sue individually.