Case Explained: IN RE: ABBOTT LABORATORIES, et al., PRETERM INFANT NUTRITION PRODUCTS LIABILITY LITIGATION TERRAINE ABDULLAH, on her own behalf and as Parent and Natural Guardian of H.S., a minor v. MEAD JOHNSON & COMPANY LLC, et al

Court: United States Court of Appeals for the Seventh Circuit Filed: 2026-07-28 The Seventh Circuit reversed the district court’s denial of the plaintiffs’ motion to remand the cases to state court, holding that the district court lacked subject matter jurisdiction because the non-diverse defendant, Pennsylvania Hospital, was not fraudulently joined. The court established that under federal law and the precedent of *Poulos v. Naas Foods, Inc.*, fraudulent joinder is limited to two specific situations: where a plaintiff makes false allegations regarding jurisdictional facts, or where the plaintiff has no chance of success against the non-diverse defendant after resolving all factual and legal issues in the plaintiff’s favor. The court rejected the district court’s novel theory that fraudulent joinder could be found based on a plaintiff’s subjective intent or lack of good faith effort to prosecute the claim, noting that such an inquiry into litigation strategy and discovery activity is inconsistent with Supreme Court precedent and the statutory framework governing diversity jurisdiction. Consequently, the cases are remanded for further proceedings consistent with this opinion, requiring the district court to recognize the absence of complete diversity due to the presence of the non-diverse hospital defendant. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.