Categorized | Legal News

Attorney General’s Lawsuit Not Stopped by Federal Class Action Fairness Act

The Wall Street Journal (1/15, Kendall, 5.91M) reports that the Supreme Court on Tuesday held that lawsuits by state attorneys general seeking damages for alleged corporate wrongdoing are not limited by the Federal Class Action Fairness Act. In the type of lawsuit known as a parens patriae action, a state attorney general sues a firm for damages or penalties for alleged harm done to the state population. In the case before the court, Mississippi Attorney General Jim Hood sued electronics firms for alleged price-fixing in the liquid-crystal-display panel industry. The LCD makers argued that the Federal law required the case be moved to Federal court, but Hood, supported by 46 other state attorneys general, contended that his lawsuit was not a class action. The court agreed with Hood.

Bloomberg News (1/14, Stohr, 1.91M) reports that the Mississippi suit “is part of the fallout from a Justice Department price-fixing investigation that has produced more than $1.3 billion in criminal fines. Mississippi is invoking its antitrust and consumer-protection statutes to sue on state residents’ behalf.” Justice Sonia Sotomayor, writing for the court, “said a key provision of the 2005 law states that it applies to ‘claims of 100 or more persons.’ Because Mississippi was pressing the suit on its own, it isn’t covered by that language, she wrote.”

If you think you have a similar case contact an experienced attorney to help you better understand your options. Call CPR at 888-375-7600 for your free consultation.

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