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Class Actions

This libguide describes Rule 23 and class-action lawsuits.

Class Action Fairness Act of 2005

The Class Action Fairness Act of 2005 (CAFA) was enacted to expand federal subject-matter jurisdiction over large class actions and mass actions in the United States. The Act permits federal courts to preside over certain class actions in diversity jurisdiction where the aggregate amount in controversy exceeds $5 million; where the class comprises at least 100 plaintiffs; and where there is at least "minimal diversity" between the parties (i.e., at least one plaintiff class member is diverse from at least one defendant). The court, however, may decline jurisdiction under certain circumstances and is required to decline jurisdiction in others. The Act also directs the courts to give greater scrutiny to class action settlements, especially those involving corporations.