Class Action Fairness Act (CAFA)

The Class Action Fairness Act (CAFA) is a law that makes it easier for large class-action lawsuits—where one or many people sue a company on behalf of many others—to be heard in federal courts rather than state courts. It applies to large cases involving significant amounts of money or many parties. The goal is to promote fairness, transparency, and consistency in resolving complex lawsuits that affect many consumers or businesses. CAFA also aims to prevent forum shopping, where plaintiffs choose courts unlikely to favor them, ensuring more equitable dispute resolution.