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