In In re Abbott Laboratories Preterm Infant Nutrition Products Liability Litigation, No. 25-2322, 25-2323, 25-2324, 25-2325 & 25-2327 (7th Cir, July 28, 2026) The Seventh Circuit considered an appeal of five cases making up a subsection of similar cases in a MDL case filed against the manufacturers of an infant formula, as well as a local hospital and its related entities – the non-diverse defendant. The appellate court considered two questions certified by the district court: whether a plaintiff’s failure to demonstrate real or good faith intent to pursue a claim against a non-diverse defendant is a basis for finding that the non-diverse defendant was fraudulently joined and, if so, whether a plaintiff’s failure to engage in litigation against the non-diverse defendant and a verbal representation that they will not seek an appeal of a dismissal of their action against a non-diverse defendant meets the standard for finding ‘no real intent’ fraudulent joinder. The Seventh Circuit concluded that the district court took a view of the fraudulent joinder doctrine that was not consistent with existing case law and that the district court’s conclusion that the plaintiffs had not shown sufficient intent to pursue litigation against the non-diverse defendant hospital was not an appropriate basis upon which to predicate a determination of fraudulent joinder.
