Judge rules against GSK in Paxil mass tort

Michael P. Tremoglie Dec. 19, 2011, 2:53pm


PHILADELPHIA (Legal Newsline) - U.S. District Judge Timothy Savage has once again rejected an attempt by GlaxoSmithKline to remove Paxil mass tort litigation case from the Philadelphia state courts to federal court in Philadelphia.

GSK tried to maintain that although the company is headquartered in Philadelphia, its "nerve center" was in Delaware and therefore the cases should be in federal courts.

The cases in question were originally filed in state court in Philadelphia, but GSK removed them to federal court in Philadelphia citing that the parties are citizens of different states.

GSK claimed citizenship in Delaware where its holding company is domiciled.

The judge ruled that because GSK's pharmaceutical and consumer healthcare business is "directed, controlled and coordinated from Philadelphia" and GSK is the "primary and significant part," of the holding company which is headquartered in Delaware, the holding company's "nerve center" is actually in Pennsylvania.

Savage wrote in his opinion, "LLC (GlaxoSmithKline LLC) is a Pennsylvania citizen and cannot remove a case from a Pennsylvania state court on the basis of federal diversity jurisdiction."

Paxil is a drug used to treat depression, obsessive-compulsive disorder, anxiety disorders, post-traumatic stress disorder, and premenstrual dysphoric disorder.

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