Opelousas General Hosp. Auth. v. FairPay Solutions, Inc., et al.

Plaintiff sued three defendants in Louisiana state court, alleging that there was an enterprise between all three defendants to misappropriate funds using a Texas bill review company's under-calculation of recommended payments to hospitals. Defendants subsequently appealed the judgment of the district court holding that the local controversy exception to federal court jurisdiction under the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d), applied to this class action suit filed by plaintiffs and remanding this case to Louisiana state court. The court held that, based on its conclusion that plaintiff failed in its burden to establish that the sole local defendant formed a significant basis of the claims of the potential class, the court vacated the remand order and directed that the case be reinstated on the district court's docket.