Class Action Fairness Act of 2005 - Impact

Impact

A study by researchers at the Federal Judicial Center has found that the enactment of CAFA was followed by an increase in the number of class actions filed in or removed to the federal courts based on diversity jurisdiction. This finding is consistent with the congressional intent in enacting CAFA. The observed increase was due primarily to increases in consumer class actions. Somewhat surprisingly, the FJC study found that much of the increase in diversity class actions has been driven by an increase in original filings in federal courts. This finding suggests that plaintiffs' attorneys are choosing the federal forum, post-CAFA, rather than defendants' counsel through removal, contrary to expectations.

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