Congress enacted CAFA in 2005 after years of legislative efforts, marking it as one of the most consequential business-related pieces of legislation of the past decade.
When it was passed, CAFA was praised by big businesses that wanted greater scrutiny of class-action lawsuits, particularly because so many multiple cases were being filed in various jurisdictions throughout the country.
The Supreme Court ruled yesterday that plaintiffs could not circumvent the Class Action Fairness Act (CAFA) by capping the value of their claims in an attempt to keep their cases in state courts.
The Class Action Fairness Act (CAFA) of 2005 expanded federal jurisdiction over class-action lawsuits primarily to reduce so-called "forum shopping, " where plaintiffs would look for the locale friendliest to class-action cases and then file in courts there.