Mississippi ex rel. Hood v. AU Optronics Corp.
Issues
When is a state’s parens patriae action a “mass action” under the Class Action Fairness Act, and therefore removable to federal court?
Over the course of a decade, a group of companies allegedly engaged in a massive conspiracy to fix the price of liquid crystal display (“LCD”) panels. Following criminal convictions and sentences, the State of Mississippi, along with twelve other states, filed a parens patriae action against the companies, seeking damages under state law. The defendant companies removed the action to district court under the Class Action Fairness Act (“CAFA”) of 2005, and the district court remanded the case to state court. On appeal, the Fifth Circuit reversed the lower court’s decision and held that Mississippi’s parens patriae action was a mass action, and therefore removable under CAFA. The Supreme Court will decide whether a state’s parens patriae action (i.e., on behalf of its citizens) constitutes a “mass action” under CAFA, and can therefore be removed to federal court. The Court’s decision will determine the possible forums for state parens patriae actions, and thereby shape states’ decisions to pursue such actions.
Questions as Framed for the Court by the Parties
Whether a state's parens patriae action is removable as a "mass action" under the Class Action Fairness Act when the state is the sole plaintiff, the claims arise under state law, and the state attorney general possesses statutory and common-law authority to assert all claims in the complaint.
Facts
In 2005, Congress passed the Class Action Fairness Act (“CAFA”), vastly expanding federal jurisdiction over class action lawsuits. See Mississippi ex rel. Hood v. AU Optronics Corp., 876 F. Supp.
Edited by
- Legal Newsline, Jessica M. Karmasek: Legal reform group, manufacturers urge U.S. SC to uphold ruling over federal jurisdiction (Sep. 16, 2013)
- New York Law Journal, Shepard Goldfein & James Keyte: Removal of Parens Patriae Actions under CAFA (June 11, 2013)
- Department of Justice, Office of Public Affairs: AU Optronics Corporation Executive Convicted for Role in LCD Price-Fixing Conspiracy (Dec. 18, 2012)