What are the differences between the federal and state class action lawsuits?

Class action lawsuits are legal proceedings that allow a large number of people to join together and sue another party, often a large corporation or insurance company. Class action lawsuits can be filed in both federal and state courts. The differences between the two types of class action lawsuits mostly have to do with the requirements for bringing the case and how much money can be recovered in damages. In California, the requirements for a class action lawsuit are governed by the California Code of Civil Procedure. This code defines who may file a class action and how many people must join in the class action before it can be filed. In some cases, there must be at least 25 members in the class. The amount of damages that can be recovered in a class action lawsuit is limited by California statute. The members of the class action can only receive the actual damages they suffered, meaning they cannot receive punitive damages in a class action lawsuit. In contrast, federal class action lawsuits are governed by the Federal Class Action Fairness Act. This act sets additional requirements for class action lawsuits, including requirements regarding class size and the amount of damages that can be recovered. For example, for a class action lawsuit to be valid in federal court, it must have at least 100 members and the amount of damages that can be recovered must be greater than $5 million. In addition, any plaintiffs who join in the class action in federal court must have a similar legal claim and/or set of facts. Overall, class action lawsuits in California are governed by state laws and are limited in the amount of damages that can be recovered, while class action lawsuits in federal court are governed by federal law and can involve larger amounts of damages.

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