Since its inception in 2005, the Class Action Fairness Act (CAFA) has allowed class action defendants to transfer cases involving more than $5 million from plaintiff-friendly state court to federal court, which traditionally offers greater protection to corporate defendants. But for years, the plaintiffs bar has creatively evaded federal jurisdiction by taking advantage of one of CAFA’s loopholes.
“After CAFA was enacted, class action plaintiffs could still stay out of federal court by filing a stipulation stating that the class wouldn’t accept aggregate damages of more than the jurisdictional amount of $5 million,” says Ogletree Deakins Shareholder Patrick Curran.
