What is class action fairness act (cafa)?
The Class Action Fairness Act of 2005 is a federal law that expanded federal court jurisdiction over large class actions, allowing defendants to move most class cases with over $5 million in controversy and minimal diversity of citizenship from state to federal court. It was intended to reduce forum-shopping in plaintiff-friendly state courts and standardize procedure across large, multistate class actions.
CAFA is the reason many class actions filed in state court end up litigated in federal court instead: a defendant can typically remove a qualifying case within 30 days of being served. It also imposes special notice and review requirements on class action settlements involving coupons or similar non-cash relief, and requires notifying state and federal officials before final approval so regulators can weigh in. CAFA does not change the substantive law that applies to a claim — only where the case is heard and some procedural settlement safeguards.
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Last reviewed 2026-08-22.