diff --git a/moonscript/transform.lua b/moonscript/transform.lua
index 82b3a5a..e6b5e47 100644
--- a/moonscript/transform.lua
+++ b/moonscript/transform.lua
@@ -877,7 +877,7 @@ Statement = Transformer({
       if_stm
     })
   end,
-  class = function(self, node)
+  class = function(self, node, ret)
     local _, name, parent_val, body = unpack(node)
     local statements = { }
     local properties = { }
@@ -1213,7 +1213,12 @@ Statement = Transformer({
           values = {
             _with_0.block_exp(out_body)
           }
-        })
+        }),
+        (function()
+          if ret then
+            return ret(name)
+          end
+        end)()
       })
     end
     return value
@@ -1342,15 +1347,15 @@ implicitly_return = function(scope)
       stm = scope.transform.statement(stm)
       t = ntype(stm)
     end
-    if types.manual_return[t] or not types.is_value(stm) then
+    if types.cascading[t] then
+      is_top = false
+      return scope.transform.statement(stm, fn)
+    elseif types.manual_return[t] or not types.is_value(stm) then
       if is_top and t == "return" and stm[2] == "" then
         return nil
       else
         return stm
       end
-    elseif types.cascading[t] then
-      is_top = false
-      return scope.transform.statement(stm, fn)
     else
       if t == "comprehension" and not types.comprehension_has_value(stm) then
         return stm
diff --git a/moonscript/transform.moon b/moonscript/transform.moon
index c1c2b22..9ab3088 100644
--- a/moonscript/transform.moon
+++ b/moonscript/transform.moon
@@ -439,7 +439,7 @@ Statement = Transformer {
       if_stm
     }
 
-  class: (node) =>
+  class: (node, ret) =>
     _, name, parent_val, body = unpack node
 
     -- split apart properties and statements
@@ -620,6 +620,8 @@ Statement = Transformer {
           names: {name}
           values: {.block_exp out_body}
         }
+        if ret
+          ret name
       }
 
     value
@@ -694,15 +696,15 @@ implicitly_return = (scope) ->
       stm = scope.transform.statement stm
       t = ntype stm
 
-    if types.manual_return[t] or not types.is_value stm
+    if types.cascading[t]
+      is_top = false
+      scope.transform.statement stm, fn
+    elseif types.manual_return[t] or not types.is_value stm
       -- remove blank return statement
       if is_top and t == "return" and stm[2] == ""
         nil
       else
         stm
-    elseif types.cascading[t]
-      is_top = false
-      scope.transform.statement stm, fn
     else
       if t == "comprehension" and not types.comprehension_has_value stm
         stm
diff --git a/moonscript/types.lua b/moonscript/types.lua
index fc5ec01..4b917bf 100644
--- a/moonscript/types.lua
+++ b/moonscript/types.lua
@@ -12,7 +12,8 @@ cascading = data.Set({
   "if",
   "unless",
   "with",
-  "switch"
+  "switch",
+  "class"
 })
 is_value = function(stm)
   local compile, transform = moonscript.compile, moonscript.transform
diff --git a/moonscript/types.moon b/moonscript/types.moon
index d072adb..70cb135 100644
--- a/moonscript/types.moon
+++ b/moonscript/types.moon
@@ -14,7 +14,7 @@ manual_return = data.Set{"foreach", "for", "while", "return"}
 -- Assigns and returns are bubbled into their bodies.
 -- All cascading statement transform functions accept a second arugment that
 -- is the transformation to apply to the last statement in their body
-cascading = data.Set{ "if", "unless", "with", "switch" }
+cascading = data.Set{ "if", "unless", "with", "switch", "class" }
 
 is_value = (stm) ->
   import compile, transform from moonscript
diff --git a/tests/inputs/class.moon b/tests/inputs/class.moon
index 92f6e6a..1677468 100644
--- a/tests/inputs/class.moon
+++ b/tests/inputs/class.moon
@@ -129,4 +129,7 @@ class Whacko
 
 print "hello"
 
+yyy = ->
+  class Cool
+    nil
 
diff --git a/tests/outputs/class.lua b/tests/outputs/class.lua
index 5af1404..2f32e38 100644
--- a/tests/outputs/class.lua
+++ b/tests/outputs/class.lua
@@ -589,4 +589,48 @@ Whacko = (function()
   end
   return _class_0
 end)()
-return print("hello")
\ No newline at end of file
+print("hello")
+local yyy
+yyy = function()
+  local Cool
+  Cool = (function()
+    local _parent_0 = nil
+    local _base_0 = { }
+    _base_0.__index = _base_0
+    if _parent_0 then
+      setmetatable(_base_0, _parent_0.__base)
+    end
+    local _class_0 = setmetatable({
+      __init = function(self, ...)
+        if _parent_0 then
+          return _parent_0.__init(self, ...)
+        end
+      end,
+      __base = _base_0,
+      __name = "Cool",
+      __parent = _parent_0
+    }, {
+      __index = function(cls, name)
+        local val = rawget(_base_0, name)
+        if val == nil and _parent_0 then
+          return _parent_0[name]
+        else
+          return val
+        end
+      end,
+      __call = function(cls, ...)
+        local _self_0 = setmetatable({}, _base_0)
+        cls.__init(_self_0, ...)
+        return _self_0
+      end
+    })
+    _base_0.__class = _class_0
+    local self = _class_0
+    _ = nil
+    if _parent_0 and _parent_0.__inherited then
+      _parent_0.__inherited(_parent_0, _class_0)
+    end
+    return _class_0
+  end)()
+  return Cool
+end
\ No newline at end of file