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What defines the criteria for the Class Action Fairness Act?

  1. Minimum of 50 class members is needed

  2. One class member must be of diverse citizenship from the defendant

  3. The total claims must exceed $1 million

  4. Only the class representative must be from a different state

The correct answer is: One class member must be of diverse citizenship from the defendant

The Class Action Fairness Act (CAFA) establishes certain criteria for federal jurisdiction over class action lawsuits, primarily focusing on diversity jurisdiction and the amount in controversy. The correct answer revolves around the requirement that at least one class member must be of diverse citizenship from the defendant. This aspect of CAFA aims to ensure that there is a legitimate connection to federal jurisdiction, which mitigates potential biases that may arise in state courts particularly when parties are from different jurisdictions. In terms of the other criteria listed in the choices, they are relevant but do not correctly capture the essence of CAFA's jurisdictional prerequisites. While CAFA does require that the total amount in controversy exceeds $5 million (not $1 million as noted), and it does not focus solely on the class representative's citizenship but rather on that of any class member, it is the requirement of at least one class member having diverse citizenship that is crucial for invoking federal jurisdiction under CAFA. Overall, the emphasis on diversity among the class members combines with the thresholds for the number of members and the amount in controversy to establish federal oversight in class action lawsuits.