Opt-Out and Direct-Action Plaintiffs in Antitrust Class Actions

Summary

This practice note discusses opt-outs and direct-action plaintiffs in antitrust class actions. Members of a putative or certified antitrust class action seeking damages have the right to exclude themselves (i.e., "opt out") from the class action proceeding and pursue their own individual claims directly against the defendants (i.e., become a "direct-action" plaintiff). The prospect of opt-outs can have significant implications for the potential opt-out, the class, and the defendants. This note discusses the legal framework of the right to opt out, the strategic considerations for absent class members deciding whether to opt out, the procedural aspects of properly opting out and pursuing a direct action, and the best practices for defendants' counsel confronted with the possibility of opt-out claims.