Client Alert

The Class Action Fairness Act of 2005

February 25, 2005

Claudia T. Callaway, Hamilton Loeb and Patrick J. Togni

President Bush signed the Class Action Fairness Act of 2005 (CAFA) into law on February 18.  CAFA will be of significant importance to clients sued in multiple state court class actions over allegedly improper business conduct or faulty products.  It will also have an effect on counsel’s ability to settle class claims for nominal forms of compensation for class members.  We expect the Act’s greatest impact to appear in consumer class actions, in indirect purchaser antitrust cases, and in state law discrimination and wage and hour cases.

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