GreenSky to Defend ‘Stem Cell’ Financing Suit in Federal Court

GreenSky LLC can litigate state-law claims that it duped senior citizens into financing falsely advertised “stem cell” injections in federal district court, after the Eleventh Circuit said the plaintiff failed to prove the lawsuit qualified for the Class Action Fairness Act’s local controversy exception.

The exception “is a narrow one,” so the court is required to resolve any doubt in favor of applying CAFA jurisdiction, Judge Andrew L. Brasher said in the Thursday opinion, reversing a U.S. District Court for the Southern District of Florida order that would have remanded the case to state court.

CAFA provides a federal court ...