Chicago Partner Rusty Perdew, Co-Chair of Locke Lord’s Consumer Products, Retail & Franchise Industry Group and a member of the Firm’s Class Actions Practice Group, provided insight to Bloomberg Law on the U.S. Supreme Court’s Decision in Home Depot U.S.A., Inc. v. Jackson, which states counterclaim defendants can’t invoke the Class Action Fairness Act to create federal jurisdiction for certain class actions.
“The decision gives final approval to a tactic that the plaintiffs’ bar can use to manipulate jurisdiction so as to keep otherwise removable class actions in state court,” said Perdew. However, he added, the defense bar could get creative to find ways to remove the suits to federal court.
“Perhaps a motion to sever in state court could render the third-party class action a separate case and thus removable under Home Depot,” he said.
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