Advanced Billing Consultants, Inc. v. Change Healthcare Inc.

CourtDistrict Court, M.D. Tennessee
DecidedApril 29, 2026
Docket3:26-cv-00338
StatusUnknown

This text of Advanced Billing Consultants, Inc. v. Change Healthcare Inc. (Advanced Billing Consultants, Inc. v. Change Healthcare Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Billing Consultants, Inc. v. Change Healthcare Inc., (M.D. Tenn. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

ADVANCED BILLING CONSULTANTS, ) INC., ) ) Plaintiff, ) NO. 3:26-cv-00338 ) v. ) JUDGE RICHARDSON ) CHANGE HEALTHCARE INC., ) ) Defendant. )

MEMORANDUM OPINION AND ORDER Pending before the Court in this action are two motions. The first is a motion to remand (Doc. No. 7, “Motion to Remand”), filed by Plaintiff, Advanced Billing Consultants, Inc. Via the Motion to Remand, Plaintiff seeks an order “remanding this case to Davidson County Circuit Court for lack of complete diversity and improper removal by Defendant.” (Doc. No. 7 at 1). Plaintiff has filed a brief (Doc. No. 8) in support of the Motion to Remand. Defendant, Change Healthcare Inc., has filed a response (Doc. No. 16, “Remand-Motion Response”) in opposition to the Motion to Remand. Plaintiff has filed a reply (Doc. No. 17) in further support of the Motion to Remand.1 The second Motion is a motion to stay (Doc. No. 11, “Motion to Stay”) filed by Defendant. Via the Motion to Stay, Defendant seeks: an order staying all proceedings in the above-captioned matter pending a decision by the United States Judicial Panel on Multidistrict Litigation (“JPML”) on Defendant’s notice identifying this action as a potential tag-along action in the related multidistrict litigation captioned In re: Change Healthcare Inc., Customer

1 Plaintiff had filed an earlier reply (Doc. No. 14) in support of the Motion to Remand. This earlier reply, which concerned itself mostly with Defendant’s failure to file a response in opposition to the Motion to Remand, has essentially become moot in light of Defendant correcting that failure (via the filing of Docket No. 16). In effect, then, Docket No. 14 has been superseded by Docket No. 17. Data Security Breach Litig., MDL No. 3108. ECF No. 588 (J.P.M.L. March 25, 2026).

(Doc. No. 11 at 1). Defendant has filed a brief (Doc. No. 12) in support of the Motion to Stay. Plaintiff has filed a response (Doc. No. 13) in opposition to the Motion to Stay. Defendant has filed a reply (Doc. No. 18) in further support of the Motion to Stay. For the reasons described below, the Motion to Remand (Doc. No. 7) is DENIED and the Motion to Stay (Doc. No. 11) is GRANTED. BACKGROUND On March 20, 2026, Defendant removed this action from the Davidson County Circuit Court. (Doc. No. 1). On March 25, 2026, Plaintiff filed its Motion to Remand, contending that Defendant’s removal of this action is an “improper attempt to force this state court case into the federal Multidistrict Litigation against Defendant that is pending in the United States District Court for the District of Minnesota[: In re: Change Healthcare Inc., Customer Data Security Breach Litig., Case No. 0:24-md-03108-DWF-DJF. (D. Minn.)].” (Doc. No. 8 at 1-2). Plaintiff argues that removal to federal court is improper because (according to Plaintiff) Defendant is a citizen of Tennessee by virtue of Defendant’s principal place of business being located (according to Plaintiff) in Tennessee, and so removal is prohibited based on the so-called “Forum Defendant Rule.”2 (Doc. No. 8 at 3-5). Defendant, of course, disagrees that remand is warranted, contending in the Remand-Motion Response that Defendant is a citizen of Delaware (given that Delaware is

the state of Defendant’s incorporation—something that Plaintiff does not dispute) and a citizen of

2 28 U.S.C. § 1441(b)(2) provides that cases in which federal jurisdiction is based solely on complete diversity of citizenship “may not be removed if any of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought.” This provision is known colloquially as the Forum Defendant Rule. See e.g., Madden v. Berea Healthcare, LLC, No. CV 5:23-223-DCR, 2023 WL 8654369, at *6 (E.D. Ky. Dec. 14, 2023). Minnesota (on account of Defendant’s principal place of business being located (according to Defendant) in Minnesota (rather than Tennessee)). (Doc. No. 16 at 4-8). Meanwhile, on March 25, 2026, Defendant filed a “Notice of Potential Tag-Along Actions” (JPML Change MDL Doc. No. 588, “Tag-Along Notice”) in the multidistrict litigation (“MDL”)

ongoing before the Judicial Panel on Multidistrict Litigation (“JPML”) captioned In re: Change Healthcare Inc., Customer Data Security Breach Litig., MDL No. 3108. (J.P.M.L) (“JPML Change MDL”).3 On March 30, 2026, the Acting Clerk of the JPML entered a conditional transfer order (JPML Change MDL Doc. No. 591, “Conditional Transfer Order”) therein conditionally transferring this action to the multidistrict litigation ongoing in the United States District Court for the District of Minnesota captioned In re: Change Healthcare Inc., Customer Data Security Breach Litig., Case No. 0:24-md-03108-DWF-DJF. (D. Minn.) (“Minn. Change MDL”).4 Plaintiff filed an objection (JPML Change MDL Doc. No. 599, “Objection”) to the Conditional Transfer Order in the JPML Change MDL on April 6, 2026, and filed a motion to vacate (JPML Change MDL Doc. No. 622, “Motion to Vacate”) the Conditional Transfer Order in the JPML Change

MDL on April 21, 2026, asserting in its memorandum in support of the Motion to Vacate, in part, that transfer of this action to the Minn. Change MDL is improper because “the Forum Defendant Rule applies, eliminating the ability for the federal courts to exercise subject matter jurisdiction

3 When referring to filings in the JPML Change MDL, the Court will use the following format (for textual references and for citations, respectively): “JPML Change MDL Docket No. ___” or “(JPML Change MDL Doc. No. ___)”

4 When referring to filings in the Minn. Change MDL, the Court will use the following format (for textual references and for citations, respectively): “Minn. Change MDL Docket No. ___” or “(Minn. Change MDL Doc. No. ___)” solely on diversity of citizenship.” (JPML Change MDL Doc. No. 622-1 at 9).5 Briefing on the Motion to Vacate is ongoing. The Motion to Vacate remains pending for decision by the JPML, as does the decision of whether to conclusively transfer this action to the Minn. Change MDL. Subsequent to the filing of the Tag-Along Notice, on March 27, 2026, Defendant filed the

Motion to Stay, contending that this action, including any decision on the Motion to Remand, should be stayed pending the JPML’s decision on the Tag-Along Notice—i.e., stayed pending the JPML’s decision on whether to transfer this action unconditionally to the Minn. Change MDL. (Doc. No. 12 at 1, 3-7). Plaintiff contends in opposition: The Court should deny Defendant’s request for a stay, which is nothing more than a ploy to use an improper removal to force state court litigants into a federal multidistrict class action pending in Minnesota—a class action Defendant knows Plaintiff will opt out of. Indeed, though a stay is extremely prejudicial to Plaintiff, denying the stay offers no prejudice to Defendant because being required to defend a case is not prejudicial.

(Doc. No. 13 at 3). Below, the Court will consider the Motion to Stay and the Motion to Remand. For the reasons stated below, the Court concludes that the Motion to Stay will be granted, that a substantive decision on the merits of the Motion to Remand will be deferred, and that the Motion to Remand will be denied without prejudice. LEGAL STANDARD A district court has wide discretion when considering whether to stay a matter. See Clinton v. Jones, 520 U.S. 681, 706 (1997) (“The District Court has broad discretion to stay proceedings as an incident to its power to control its own docket.”).

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Bluebook (online)
Advanced Billing Consultants, Inc. v. Change Healthcare Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-billing-consultants-inc-v-change-healthcare-inc-tnmd-2026.