Class Action Fairness Act of 1998

Class Action Fairness Act of 1998 - Amends the Federal judicial code to require that, no later than ten days after a proposed settlement in a class action is filed in court, the attorneys representing the class in a class action serve the attorney general of each State (State AGs) in which a class member resides and the Department of Justice (DOJ) with specified information, including notice of a proposed settlement. Prohibits the holding of a hearing to consider final approval of a proposed settlement earlier than 120 days after the date on which the State AGs and DOJ are served notice. Requires any court with jurisdiction over a plaintiff class action to require that: (1) any written notice provided to the class through the mail or publication in printed media contain a short summary written in plain, easily understood language describing the subject matter of the class action, the legal consequences of joining such action, the ability of a class member to seek removal of the action to Federal court if the action is filed in a State court and Federal jurisdiction would apply, and, if the notice is informing class members of a proposed settlement agreement, specified information; and (2) any notice provided through television or radio to inform class members of their rights to be excluded from a class action or a proposed settlement describe, in plain, easily understood language, the persons who may potentially become class members and explain that the failure of persons falling within the definition of the class to exercise their right to be excluded from a class action will result in such persons' inclusion in such action. Authorizes a class member to refuse to comply with, and choose not to be bound by, a settlement agreement or consent decree in a class action if the class member resides in a State where the State AG has not been provided notice and materials under this Act. Limits attorney's fees and expenses awarded to counsel for plaintiffs in class actions to a reasonable percentage of: (1) any damages and prejudgment interest actually paid to the class; and (2) costs actually incurred by all defendants in complying with injunctive orders or settlement agreements. (Sec. 3) Grants district courts original jurisdiction in class actions involving diversity jurisdiction where the matter in controversy exceeds $75,000 (based on aggregated individual claims of class members), exclusive of interest and costs. (Sec. 4) Authorizes removal of class actions to a district court by any: (1) defendant without the consent of all defendants; or (2) plaintiff class member who is not a named or representative member without the consent of all members. (Sec. 5) Amends the Federal Rules of Civil Procedure to require (currently, authorizes) the imposition of sanctions for the filing of frivolous lawsuits and the making of other specified misrepresentations to the court.