Under CAFA, which statement about class actions is true?

Under CAFA, which statement about class actions is true?

• A. CAFA jurisdiction requires at least one plaintiff and one defendant with complete diversity
• B. CAFA requires 100 or more class members and more than $5 million in aggregate damages, and at least one plaintiff and defendant with diversity
• C. CAFA eliminates the need for court approval of settlements
• D. CAFA limits class actions to injunctive relief only

Answer: (B)

CAFA expands federal jurisdiction for class actions by looking at three thresholds: class size, total amount in controversy, and minimal diversity. The true statement reflects that there must be 100 or more class members, more than $5 million in aggregate claims, and at least one plaintiff and one defendant from different states (minimal diversity). This means complete diversity isn’t required; any cross-state pairing between at least one plaintiff and one defendant suffices. The other options misstate how CAFA works: it does not require complete diversity, it doesn’t address settlement approval, and it doesn’t limit class actions to injunctive relief only.

CAFA expands federal jurisdiction for class actions by looking at three thresholds: class size, total amount in controversy, and minimal diversity. The true statement reflects that there must be 100 or more class members, more than $5 million in aggregate claims, and at least one plaintiff and one defendant from different states (minimal diversity). This means complete diversity isn’t required; any cross-state pairing between at least one plaintiff and one defendant suffices. The other options misstate how CAFA works: it does not require complete diversity, it doesn’t address settlement approval, and it doesn’t limit class actions to injunctive relief only.