Rufe, District Judge.
Plaintiffs brought suit against Pfizer, Inc., Pfizer International LLC, J.B. Roerig & Co. and Greenstone LLC (collectively, "Pfizer") and McKesson Inc., alleging numerous state-law claims, including failure to warn, negligence, and fraudulent concealment. Plaintiffs filed the action in California state court, Defendants removed it to federal court on the basis of diversity jurisdiction, and the case was transferred to this Court as part of the Zoloft Multidistrict Litigation ("MDL").
Plaintiffs have moved to remand the matter to California state court for lack of diversity jurisdiction, as Plaintiffs are California citizens and Defendant McKesson is a California corporation. Defendants argue that the lone California defendant, McKesson, is fraudulently joined and therefore complete diversity exists between the parties. This Court has considered the issue before, in both the Avandia and Zoloft MDLs. Consistent with those earlier decisions, the Court holds that Plaintiffs have pled sufficient facts to assert a claim against McKesson,
Plaintiff D.B. was born in 2014 with a serious birth defect allegedly caused by Zoloft taken during pregnancy by his mother, Plaintiff Julie Parmley.
Removal of a civil action from state to federal court is governed by 28 U.S.C. § 1441. The removal statutes "are to be
Plaintiffs argue that remand is proper because there is incomplete diversity between the Plaintiffs and all named Defendants.
In order to establish fraudulent joinder, a defendant must prove that "there is no reasonable basis in fact or colorable ground supporting the claim against the joined defendant, or no real intention in good faith to prosecute the action against the defendants or seek a joint judgment."
Defendants first argue that Plaintiffs' Complaint lacks specific allegations necessary to assert a claim against McKesson. The Court has explored, and rejected, this argument in the Avandia MDL, which included numerous motions to remand individual cases involving McKesson to California state court, and where the Court held that similar allegations against McKesson satisfied California's permissive pleading standard for the asserted failure to warn and strict product liability claims.
Defendants' next argument extends from the first: that the absence of specific allegations against McKesson in Plaintiffs' Complaint demonstrates a lack of good faith intent to pursue their claims against McKesson, and that the Court should find fraudulent joinder on that basis. However, as with Avandia, the Court finds that the facts pleaded are not implausible — it is possible that McKesson distributed Zoloft which ended up being consumed by Plaintiffs. Further, Plaintiffs' Complaint is not fatally inconsistent as it alleges a vague but plausible causal chain of events that could expose McKesson to liability. The general allegations do not, by themselves, indicate a lack of good faith on the part of Plaintiffs' to pursue claims against McKesson.
However, the Court finds merit in Defendants' contention that the generalized allegations and the history of the Zoloft litigation together demonstrate that Plaintiffs have no intention to pursue their claims against McKesson. Defendants assert that Zoloft plaintiffs, including others represented by Plaintiffs' counsel here, have regularly failed to propound discovery on McKesson and often have voluntarily dismissed McKesson as a named defendant. The Court considered a similar situation in the Avandia MDL, where the Court examined the history of the litigation and found that although the Avandia litigation had been ongoing for five years, and general discovery was completed in the state and federal matters, the plaintiffs' counsel had not sought discovery from McKesson and could offer no good explanation why it had not. The Court thus concluded that McKesson had been fraudulently joined by the California plaintiffs.
Here, the circumstances also evince no intent on the part of the plaintiffs to pursue claims against McKesson. As was the case in Avandia, the Court has been made aware of no instance in which any of the numerous Zoloft plaintiffs have propounded meaningful discovery on McKesson in either state or federal court, even though some cases have gone to trial. This failure to seek discovery includes other cases brought by Plaintiffs' counsel.
Even more significantly, the plaintiffs in numerous Zoloft cases have dismissed
Upon careful consideration of all relevant circumstances, the Court concludes that the naming of McKesson does not bar diversity jurisdiction based on the general allegations against McKesson in the Complaint, in conjunction with the lack of any discovery against McKesson in Zoloft cases. Plaintiffs make no real attempt to distinguish the Avandia cases where the Court found fraudulent joinder. Instead, they simply state that the Federal Rules of Civil Procedure contemplate no discovery standard to establish whether a party is properly joined. But this brief argument fails to consider the larger context of the Zoloft litigation. Hundreds of Zoloft cases have proceeded in federal and state court, and numerous plaintiffs, including those represented by Plaintiffs' counsel, have had the opportunity to prosecute claims against McKesson and failed to do so. This is certainly relevant information for the Court to consider when examining the intent of the Plaintiffs in this case.
In sum, Plaintiffs here have asserted non-specific claims against McKesson, Plaintiffs' counsel has in separate Zoloft actions failed to propound discovery on McKesson, and, most notably, Plaintiffs' counsel has outright dismissed McKesson as a defendant in other state and federal Zoloft cases. The Court thus concludes that Plaintiffs lack good faith intent to prosecute their claims against McKesson. The Court finds McKesson to be fraudulently joined in this action, and therefore does not take McKesson into account during its diversity jurisdiction analysis. Without McKesson, there is complete diversity between Plaintiffs and Defendants, and no dispute that the amount in controversy exceeds $75,000. The Court thus has jurisdiction over this case.
This Court has subject matter jurisdiction over this case pursuant to § 1332. Plaintiffs' motion to remand is denied. An order will be entered.