Friend, an employee with Hertz Corporation (Hertz) (defendant), and a number of other Hertz employees (collectively Plaintiffs) filed a class action suit against their employer alleging that the rental car company had failed to conform to California’s wage and hour laws. Alleging that the Plaintiffs and it were from different states, Hertz sought to remove the case to federal court. 28 U.S.C. §§ 1332(d)(2), 1441(a). Plaintiffs argued that Hertz’s principal place of business was located in California because it derived more revenue from that state than from any other state and the majority of its business activities were conducted in California. The district court agreed with Plaintiffs and found Hertz to be a citizen of California. Hertz appealed and the Ninth Circuit Court of Appeals affirmed. The U.S. Supreme Court granted certiorari to review.