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Class Action Fairness Act of 2005 Gives Federal Courts Jurisdiction Over Most Nationwide Class Actions

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Home Perspectives Class Action Fairness Act of 2005 Gives Federal Courts Jurisdiction Over Most Nationwide Class Actions

§ Extending federal subject-matter jurisdiction over most large class actions involving residents of different states, thereby eliminating plaintiffs’ ability to forum shop by filing large nationwide class actions in state courts;

§ Limiting attorneys’ fees awards and increasing scrutiny of class settlements, so that fee awards reflect the actual value of a settlement to the class; and

§ Requiring that all proposed class action settlements be disclosed to designated state and federal officials prior to approval by the Court.

Although the act is effective immediately, it applies only to cases filed on or after the date of enactment, so any cases that were pending before February 18, 2005 will not be subject to removal pursuant to the new jurisdictional provisions. 

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