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Graphic Communications Local 1b Health & Welfare Fund "A"; the Twin v. Cvs Caremark Corporation; Cvs Pharmacy, Inc; Caremark, LLC; Caremark

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Submitted: January 11, 2011

Before BOWMAN, BYE, and SHEPHERD, Circuit Judges.

Plaintiffs, a group of union-sponsored health benefit plans, brought suit in Minnesota state court alleging various generic drug pricing claims against Defendants, who represent leading retail pharmacy chains. Plaintiffs also requested certification of a class of all purchasers of, or third-party payment sources for, generic prescription drugs dispensed by Defendants in Minnesota since July 28, 2003. On August 21, 2009, Defendants removed the case to federal court, asserting diversity jurisdiction under the Class Action Fairness Act of 2005 (“CAFA”), 28 U.S.C. § 1332(d)(4). On November 24, 2009, the district court granted Defendants’ motion to dismiss the complaint without prejudice. The next day, Plaintiffs filed a second amended complaint, and shortly thereafter, they moved to remand the case to state court based on CAFA’s local controversy provision. On July 19, 2010, the district court granted Plaintiffs’ motion and remanded the case to state court after it determined it lacked subject matter jurisdiction over the matter. On appeal, Defendants contend CAFA’s local controversy provision does not divest the court of subject matter jurisdiction, and because Plaintiffs moved to remand the matter more than thirty days after removal, the remand motion should have been denied as untimely pursuant to 28 U.S.C. § 1447(c). We reverse and remand to the district court for further proceedings.

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