News & Analysis as of

Class Action Fairness Act

Growing Consensus in the Courts of Appeals against Alternative-Citizenship Theory of Diversity under CAFA

If a putative class of plaintiffs, all citizens of State A, sues a corporate defendant, which the law considers to be a citizen of State A and State B, in state court, may the defendant remove the case to federal court under...more

A Corporation May Not Pick And Choose Its Citizenship To Create Diversity Under CAFA

The Sixth Circuit became the third court of appeals to reject the “alternative citizenship” theory of diversity under the Class Action Fairness Act (CAFA). In Roberts v. Mars Petcare US, Inc., a putative class of Tennessee...more

Financial Services Weekly News - November 2017

by Goodwin on

Editor's Note - In This Issue. The U.S. House of Representatives approved the Senate’s 2018 budget resolution, potentially paving the way for tax reform; the U.S. Securities and Exchange Commission (SEC) issued three...more

Ninth Circuit Reverses CAFA Remand in Call Recording Case

by Goodwin on

On October 20, 2017, the Ninth Circuit reversed the Southern District of California’s remand of a putative class action alleging that defendant Monterey Financial Services improperly recorded calls to individuals in...more

The Class Action Chronicle Fall 2017

This edition focuses on rulings issued between May 15, 2017, and August 15, 2017. In this issue, we cover four decisions granting motions to strike/dismiss class claims, five decisions denying such motions, 27 decisions...more

7th Circuit Affirms Plaintiff’s Own Estimates of Class Size Can Satisfy CAFA

In Roppo v. Travelers Commercial Insurance Company, the Seventh Circuit held that even after a motion to remand CAFA removal jurisdiction can be sufficiently established by a defendant’s “good faith estimates” of the amount...more

Dealing with Competing Class Actions, Part One – Race to Judgment and First-to-File Rule

Multiple actions involving the same subject matter and the same defendant are a common feature of the U.S. class action landscape. In this series of blog posts, we’ll examine the problem of competing class actions, which...more

Class Action Roundup: Summer 2017

by Alston & Bird on

Welcome to our second Roundup of 2017, where we feature the cases litigated and settlements finalized during the second calendar quarter of the year. It was a very active quarter in almost all of the categories we monitor,...more

Putative Class Complains that Annie’s “Strawberry Fruit Snacks” Lack Strawberries

On August 1, 2017, plaintiff Raymond Alvandi filed a putative class action in California federal court against Annie’s, Inc., seeking damages and injunctive and declaratory relief. Alvandi alleges that Annie’s misrepresented...more

Romulus v. CVS Pharmacy, Inc.: Meal Periods, Ascertainability, and the Importance of Removal

by Pierce Atwood LLP on

In Romulus v. CVS Pharmacy, Inc., five former Shift Supervisors brought a putative class action against CVS under the Massachusetts Wage Act, contending they were required to work through their unpaid breaks. Specifically,...more

The Class Action Chronicle - Summer 2017

This edition focuses on rulings issued between February 15, 2017, and May 15, 2017. It begins with an article on the federal judiciary beginning to take notice of issues surrounding third-party litigation funding and testing...more

The Financial Stability Oversight Council: another potential route for overturning the CFPB’s final arbitration rule

by Ballard Spahr LLP on

In addition to the passage of legislation amending the Dodd-Frank Act (DFA), disapproval under the Congressional Review Act, and a legal challenge filed in court, a fourth potential route for stopping the CFPB’s final...more

Ninth Circuit Narrows Already Slim Exception to Rule Barring Post-Removal Amendments to Avoid CAFA Jurisdiction

by BakerHostetler on

A plaintiff will rarely be permitted to amend its class action complaint after removal to avoid federal jurisdiction under the Class Action Fairness Act (CAFA). That is the takeaway from the Ninth Circuit Court of Appeals’...more

A Cautionary Tale: Counterclaim Class Action Stuck in State Court

by McGuireWoods LLP on

The Class Action Fairness Act (CAFA) was enacted in 2005 to expand the subject-matter jurisdiction that Federal courts had over class actions. Yet CAFA’s reach is not unlimited, and in some instances, a corporation may still...more

Consolidated Cholesterol Drug Cases Lack Critical Mass for CAFA Jurisdiction

by Carlton Fields on

The Central District of California district court recently weighed in on the limits of mass action jurisdiction under the Class Action Fairness Act (CAFA). The matter began as various individual state court actions alleging...more

Big Changes Could be Coming to Class Action Practice, Courtesy of Congress

by Hinshaw & Culbertson LLP on

Class actions, especially those with nationwide scope and the specter of huge payouts, have long been the stuff of nightmares for in-house counsel and corporate executives. The press regularly report on settlements where...more

Timing Is Everything: District Court In New York Approves CAFA Removal Two Years After Case Filing

by Jackson Lewis P.C. on

In a somewhat unusual ruling, a New York federal court denied an unpaid intern’s attempt to remand a putative wage-hour class action against Oscar de la Renta to state court even though the case was removed to federal court...more

Attempting to Counter a CAFA Loophole

by Carlton Fields on

Home Depot filed a certiorari petition in the United States Supreme Court aimed at closing an emerging loophole in CAFA jurisprudence in various circuits. According to the petition, some circuits have “narrowly construed...more

Sixth Circuit Narrowly Construes CAFA’s Local Controversy Exception

by BakerHostetler on

Congress passed the Class Action Fairness Act (CAFA) in 2005 to address a series of well-documented abuses of the class action process. Among the protections of the act were provisions enabling class action defendants to...more

Second Circuit Affirms Dismissal Of Shareholder Suit, Finding Subject Matter Jurisdiction Was Properly Exercised, Equity Dilution...

by Shearman & Sterling LLP on

On April 26, 2017, the United States Court of Appeals for the Second Circuit affirmed the dismissal of a lawsuit brought by a shareholder of Star Bulk Carriers Corp. (“Star Bulk”) against its directors and entities affiliated...more

Sixth Circuit Rules that the Class Action Fairness Act Means What it Says

by Benesch on

A statute, distilled to its essence, is thought conveyed through words. And when those words are understandable and coherently arranged, there’s nothing for courts to do when adjudicating disputes involving them, other than...more

False Advertising – Class Action Defense

by BakerHostetler on

Recent class certification decisions involving price comparison ads are prompting a large number of copycat suits, and retailers nationwide are carefully evaluating their sales advertising practices. Whether comparisons are...more

Ninth Circuit Stumbles on CAFA

by Reed Smith on

Plaintiff lawyers must be mighty allergic to federal court. They perform all sorts of maneuvers to avoid CAFA removal of mass actions. For example, they will artificially subdivide their cases into groups of under 100. ...more

Saved By The Bellwether Trial in the Ninth Circuit

by Carlton Fields on

Removal under the “mass action” provision of the Class Action Fairness Act (CAFA) is appropriate when 100 or more plaintiffs take the affirmative step of proposing to try their claims jointly and the claims involve common...more

Congressional Overhaul of Class Action Procedure Pending Senate Consideration

by Moore & Van Allen PLLC on

As class action litigation has continued to proliferate, we have seen efforts to rein in the perceived abuses of the system on multiple fronts. Over a decade ago, Congress passed the Class Action Fairness Act of 2005 (CAFA)...more

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