Page "Class action" Paragraph 7

Typically, federal courts are thought to be more favorable for defendants, and state courts more favorable for plaintiffs.

Many class actions are filed initially in state court.

The defendant will frequently try to remove the case to federal court.

The Class Action Fairness Act of 2005 increases defendants ' ability to remove state cases to federal court by giving federal courts original jurisdiction for all class actions with damages exceeding $ 5, 000, 000, exclusive of interest and costs.

It should be noted, however, that the Class Action Fairness Act contains carve-outs for, ' inter alia ', shareholder class actions covered by the Private Securities Litigation Reform Act of 1995 and those concerning internal corporate governance issues ( the latter typically being brought as shareholder derivative actions in the state courts of Delaware, the state of incorporation of most large corporations ).