What is the class action fairness act?

The Class Action Fairness Act (CAFA) is a federal law designed to give more control to courts and individuals over class action lawsuits. CAFA, which was passed in 2005, was created to combat perceived abuse of class action lawsuits as a way of achieving an unfair outcome. Under CAFA, class action lawsuits can be heard in federal court if the case is considered to involve: (1) large amounts of money, (2) a large number of people, (3) a dispute over a matter of national importance, and/or (4) a conflict of law between different states. CAFA also gives more power to individuals when they are part of a class action lawsuit. Individuals can opt-out of a class action lawsuit and bring their own individual lawsuit instead. Furthermore, CAFA requires that class action settlements include a notice to all potential members of the class and provides for a court hearing to ensure that settlement terms are fair. In California, CAFA does not apply to class action lawsuits brought under state law. However, in limited circumstances, CAFA does apply when a class action lawsuit is brought in state court and involves parties from different states. Overall, the Class Action Fairness Act is designed to give the courts and individuals more control over class action lawsuits and provide more protection for individuals who are part of these cases.

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What is the class action fairness act?

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