CAFA: Seventh Circuit’s Interpretation of the Home-State Controversy Exception

In a key ruling, the Seventh Circuit reversed a district court’s decision on a class action involving Country Mutual Insurance Co. and its directors. The case focuses on claims of excessive profit retention and fiduciary duty violations, with plaintiffs seeking remand under CAFA’s home-state exception. While Country Mutual was the main target, individual defendants, like CFO Robert Bateman, were not considered “primary defendants.” This decision affects jurisdiction and highlights complexities in corporate governance claims.