United States: Federal Appellate Court Dismisses Case Involving LLCs with Foreign Dual Citizenship for Lack of Jurisdiction

Global Legal Monitor from the Law Library of Congress

07/24/2026 09:54 AM EDT

On June 25, 2026, the U.S. Court of Appeals for the Fourth Circuit held that a limited liability company (LLC) with members who are both domestic and foreign citizens could not bring a lawsuit against a group of defendants with citizenship in the United Kingdom and North Carolina. The court explained that when a plaintiff LLC includes both domestic and foreign members, the claim cannot withstand diversity jurisdiction requirements under 28 U.S.C. § 1332(a)(3).In the case, FS Med. Supplies, LLC v. Tanner Pharma UK Ltd. (Case), FS Medical Supplies, an LLC with members from California, Texas, and China, sued several defendants for breach of contract claims in the U.S. District Court for the Western District of North Carolina. FS Medical Supplies asserted diversity jurisdiction under 28 U.S.C....

 

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