Providing Notice Required by CAFA

Ryan C. Bykerk of Greenberg Traurig.

The Class Action Fairness Act of 2005 turns 15 years old on Feb. 18, 2020. But while CAFA is well known for expanding federal subject matter jurisdiction for class actions, it also requires defendants who settle any class action in federal court to provide notice of the settlement to the federal and relevant state governments. This obligation is easy to overlook, but it should not be forgotten. This article provides a summary of what must be done and some pointers for how to streamline the process.

февраля 18, 2020 at 05:03 PM

By Ryan C. Bykerk | февраля 18, 2020 at 05:03 PM

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The Class Action Fairness Act of 2005 (CAFA) turns 15 years old on Feb. 18, 2020. But while CAFA is well known for expanding federal subject matter jurisdiction for class actions, it also requires defendants who settle any class action in federal court (not just those removed to federal court under CAFA) to provide notice of the settlement to the federal and relevant state governments. (See 28 U.S.C. §1711(2) (defining “class action” to include “any civil action filed in a district court of the United States under rule 23 of the Federal Rules of Civil Procedure or any civil action that is removed to a district court of the United States that was originally filed under a state statute or rule of judicial procedure authorizing an action to be brought by 1 or more representatives as a class action”).)

This obligation is easy to overlook, but it should not be forgotten: Failure to provide the required notice can allow class members to “refuse to comply with” and “choose not to be bound by” the parties’ agreement. (28 U.S.C. §1715(e).) This article provides a summary of what must be done and some pointers for how to streamline the process.

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