January 5, 2004
A bipartisan agreement in the Senate has cleared the way for new limits on class action lawsuits. The House earlier passed similar legislation. The Class Action Fairness Act prohibits class action settlements in which the class members actually lose money after paying attorneys fees. The act would also permit large, multi-state class action lawsuits to move from state to federal court, preventing widespread "venue shopping" by trial lawyers. "The current system benefits mostly class action lawyers-the Class Action Fairness Act will change all that," said U.S. Chamber of Commerce President Thomas Donohue.