The class action settlement du jour is from the Thinx period underwear company, having to do with allegations that the menstrual products contain harmful chemicals that potentially cause fertility issues or cancer. While Thinx denies these allegations, they are providing the following options for people who submit a claim before mid-April: take a cash reimbursement for $7 per pair for up to three pairs; get 35% off a single purchase up to $150; object; exclude yourself from the settlement; or do nothing.
Thinx is not the only settlement available right now, and each one offers different options and caveats. So, how do decide when a settlement is a good deal—or when you should hold out in case you want to bring action later?
When to take the cash reimbursement in a settlement
If the settlement is offering you money, taking it and being done with the ordeal might seem like the best choice. After all, $21 dollars can buy me a few new pairs of (cheap) undies from a big box store. And if you look through the list of all the class action lawsuits potentially available to you at any given time, you’ll see that in most (but not all) cases, you won’t receive a large sum of money, especially if you weren’t aware of the wrong done to you in the first place.
Plus, money is money and, especially if you feel not a lot of harm was done, taking even a few dollars from a huge corporation might feel like a win. And, if harm was done to you, and/or if you think the company is horrible, it feel worth it to you to try to bring them down, one penny at a time.
What’s important to keep in mind, though, is that in almost all cases, you cannot later sue the company if you take any monetary settlement. You’d likely have to prove the case or defendant was fraudulent, which is not easy to do.
Should you “object” to a class action settlement?
Objecting might sound fun and dramatic, but you do have to say why you object. The American Bar Association says they anticipate objections and allow time for them ahead of the final hearing. If enough people object, they do need to go back to the table.
In 2018, there were some changes made to the rules in the procedural guidance about objections, which seemed to help “streamline” the process for courts and perhaps make it harder for just anyone to waltz in there and yell about how they don’t like the way things went down. The guidelines say, “You can ask the Court to deny approval by filing an objection. You can’t ask the Court to order a different settlement; the Court can only approve or reject the settlement. If the Court denies approval, no settlement payments will be sent out, and the lawsuit will continue. If that is what you want to happen, you should object.” You will likely need to consult a legal professional if you want to get any real change made to an already settled judgment.
Should you “exclude” yourself from a class action settlement?
Excluding yourself and doing nothing are different things. Excluding yourself is an action you take. It’s a big “no, thank you” to the offerings of the settlement without officially showing up to object. You must fill out the claim and say you’re choosing to be excluded if you think there’s even a slim possibility you might want to bring your own legal action in the future.
For example, if, in many years’ time, you discover you were more severely harmed by Thinx underwear than you originally thought and you want to sue, you can only do so if you excluded yourself from the settlement. To exclude yourself, you likely need to provide proof of purchase just like if you opted to take the money, so you must have your receipt either way.
Do nothing
You can, of course, do nothing and ignore the settlement offering altogether. Doing nothing does not allow you to later bring a suit later, though. If you do nothing, you actually waive your right to bring your own suit later, at least according to the Thinx settlement terms.
To make sure people have time to make their decision, the Class Action Fairness Act makes it a law that information about a class action settlement over $5 million must be distributed widely, via mail, email, and social media, so people have a chance to find out about it. That’s why you often get what looks like spam or junk mail from companies telling you you may be eligible for compensation. Sometimes, you really might be.
In the end, it’s a personal decision, and the details will vary from case to case. Judging your own risk and benefit from taking a settlement might be a big decision—and especially if there is a large sum or other risk at play, you might want to seek out your own legal advice.