Case Detail

State of Mississippi ex rel. Hood v. AU Optronics Corp.
On January 14, 2014, the U.S. Supreme Court unanimously declined to uphold the right of out-of-state business defendants to a federal forum under the Class Action Fairness Act (“CAFA”), a 2005 law enacted by Congress to ensure that the right of removal is protected for most such defendants. In a case strategically filed by the Mississippi Attorney General as a parens patiae suit in state court, WLF expressed concern that allowing state attorneys general to keep such cases in state court will only allow plaintiffs’ lawyers to game the system and avoid removal—the very thing that Congress sought to avoid when it adopted CAFA. The Supreme Court disagreed, holding that the text of CAFA does not require a district judge to consider “real parties in interest” who are not named as plaintiffs in the complaint. Because the State of Mississippi is the only named plaintiff in a parens patriae suit, the Court held that such suits do not qualify as “mass actions” under CAFA.
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9/10/2013: Download the Brief

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