Supreme Court Limits Forum Shopping, Creates Risk Management Opportunities

23 June 2017
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Key takeaways

  • Monday’s Supreme Court decision in Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco County limits the ability to bring nationwide class actions or multi-plaintiff actions in state courts located where the defendant is not headquartered, not incorporated, and has no relevant business opportunities.
  • In light of the Supreme Court’s decision, companies that are frequently the target of lawsuits may want to consider whether to change their state of incorporation or headquarters to reduce exposure to nationwide actions in hostile jurisdictions.