Flimsy Watercraft, Inc., makes and sells a boat to Glen, who is injured in an accident allegedly due to the boat. Glen and others similarly situated pool resources to file a suit as a group against Flimsy, seeking $10 million in damages. Under the Class Action Fairness Act, the suit must be filed in a federal court
A) if Flimsy is a national corporation.
B) if more two-thirds of the plaintiffs are from multiple states.
C) under any circumstances.
D) under no circumstances.

Question

Quizplus · Accepted Answer

The Class Action Fairness Act requires that for a class action lawsuit to be filed in federal court, the plaintiffs must be from multiple states and the amount in controversy must exceed $5 million. In this scenario, the plaintiffs are seeking $10 million in damages, but there is no indication that Flimsy is a national corporation. Therefore, the suit must be filed in federal court only if more than two-thirds of the plaintiffs are from multiple states.