Class Action Fairness Act of 2005

The Class Action Fairness Act of 2005 (CAFA) is a law that changed how large group lawsuits, called class actions, are handled in the U.S. courts. It allows for certain class actions with many plaintiffs or large stakes to be moved from state courts to federal courts. The goal is to promote fairer handling of these cases, prevent manipulation by defendants, and ensure consistent rulings. CAFA also requires greater transparency about the attorneys’ fees and settlement funds, aiming to protect both consumers and defendants while improving the efficiency of resolving big, complex legal disputes.