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As society becomes increasingly litigious, and as plaintiff attorneys market their services more aggressively, class action litigation is posing a rapidly growing threat to businesses in all sectors.

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Class Action Blog
December 18, 2019

The Third Time is the Charm — Two Judge Panel Rules That CAFA’s Local Controversy Exception Did Not Apply.

Author: Anthony Martin

Arkansas citizen Douglas Atwood filed his class action complaint against Illinois corporation Walgreen Company and two of its Arkansas district managers in Arkansas state court. Atwood claimed that Walgreens’ balance rewards program violated an Arkansas price discrimination statute. The defendants removed the case under CAFA, but Atwood moved to remand based on the “local controversy exception to CAFA.” After the district court denied Atwood’s motion to remand while granting the defendants’ motion to dismiss, Atwood appealed. He argued on appeal that the district court improperly considered extrinsic evidence. The Eighth Circuit disagreed and affirmed.