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RMA supports Class Action Fairness Act

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The Class Action Fairness Act, a bill designed to reduce the number of frivolous class action lawsuits, has been introduced in the U.S. House of Representatives.

The proposed legislation aims to:

1. Move interstate class action lawsuits from state to federal court if the collective amount in dispute exceeds $2 million;

2. Reduce the use of "venue shopping," a tactic employed by trial lawyers to target state court systems with a friendly attitude toward class action suits.

"The class action system is being abused by trial lawyers who seem to be more interested in personal gain rather than (the achievement) of equitable settlements for the victims they represent," says Ann Wilson, senior vice president, government affairs, for the Rubber Manufacturers Association (RMA).

The legislation also prohibits "geographic discrimination" in which local plaintiffs receive more compensation than those living further away from the court.

In addition, it prohibits the payment of bounties that would give named plaintiffs more compensation than other class members.

"This legislation is long overdue," says Wilson.

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