Plaintiffs in Calif. PregnancyCare Class Action Say Diversity Jurisdiction Exists

SAN DIEGO — Plaintiffs in a putative class action who allege they were sold worthless “PregnancyCare” insurance policies that were issued as part of a fraudulent captive reinsurance scheme told a federal judge that diversity jurisdiction exists because at least two members of the class are not California citizens.

In their Dec. 20 response to the U.S. District Court for the Southern District of California’s order to show cause, plaintiffs argued the Class Action Fairness Act requires only “minimal diversity” wherein federal jurisdiction extends to diversity between “any plaintiff” and “any defendant.”

“As applicable here, federal jurisdiction in diversity …