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Judge Rules GSK's 'Nerve Center' in Philadelphia for Paxil Suits

By Shannon P. Duffy
July 26, 2011

Lawyers for GlaxoSmithKline (GSK) were enjoying something of a winning streak in their efforts to remove drug product liability lawsuits to federal court ' and keep them there ' by arguing that it has converted to a limited liability company that is based in Delaware. But that streak may now be over.

U.S. District Judge Timothy J. Savage ruled that GSK cannot claim Delaware citizenship for purposes of federal diversity jurisdiction because its true “nerve center” is in Philadelphia and its Delaware office is nothing more than a “closet” that measures 10'-by-10' and is almost never used.

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