CAFA notice: Overview, definition, and example
What is CAFA notice?
A CAFA notice refers to the notice required under the Class Action Fairness Act of 2005 (CAFA). This U.S. federal law requires parties to notify appropriate federal and state officials when a proposed class action settlement is filed in federal court. The notice must include specific information about the case and the settlement terms so that government authorities can review and potentially object if the settlement is unfair or unlawful.
Why is CAFA notice important?
CAFA notices promote transparency and government oversight in class action settlements. They help protect class members—often consumers or employees—by giving state and federal regulators the chance to intervene if the settlement is abusive, inadequate, or deceptive. Failing to provide a timely and complete CAFA notice can delay or even invalidate a class settlement, so it’s a key procedural step for legal compliance.
Understanding CAFA notice through an example
A nationwide retailer settles a wage-and-hour class action brought by employees in multiple states. Under CAFA, the company must send a CAFA notice to the U.S. Attorney General and to the attorney general in each state where a class member resides. The notice includes the complaint, the proposed settlement, and other required documents. This allows regulators to evaluate the deal and decide whether to object before the court grants final approval.
Example of a CAFA notice clause
Here’s how a CAFA notice clause may look like in a contract or settlement agreement:
"Pursuant to 28 U.S.C. § 1715, the Defendant shall provide the CAFA notice to the appropriate federal and state officials within ten (10) days after the filing of the proposed settlement agreement with the Court. The notice shall include all documents and information required under CAFA, including a copy of the complaint, the proposed settlement, and any related judicial opinions."
Conclusion
The CAFA notice requirement is a critical safeguard in class action litigation. It ensures that government agencies have a chance to review proposed settlements and speak up on behalf of class members if necessary. If you're involved in a class action settlement in federal court, this step isn't optional—it's legally required and essential for getting court approval.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.