Justices Back Limits On Class Action Removal Authority

Law360 (May 28, 2019, 10:36 AM EDT) -- The U.S. Supreme Court declined on Tuesday to close what Home Depot and other business interests have argued is a legal loophole allowing plaintiffs lawyers to trap big-dollar class actions in state court, ruling that third-party counterclaim defendants in such cases can't remove claims filed against them to federal court.

In an unusual 5-4 split, Justice Clarence Thomas sided with the high court's liberal wing to form a majority holding that when a defendant files class action counterclaims that bring a previously uninvolved party into a state court case, that additional party cannot remove the claims to federal court under either...

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