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flag U.S. Supreme Court rules NJ Transit can be sued outside New Jersey, rejecting sovereign immunity claim.

flag The U.S. Supreme Court unanimously ruled that New Jersey Transit can be sued in other states, rejecting its claim of sovereign immunity. flag The court held that NJ Transit is a separate legal entity not entitled to the state’s immunity, allowing ongoing injury cases in Pennsylvania and New York to proceed. flag Justice Sonia Sotomayor emphasized that NJ Transit operates independently, bears its own debts, and is not directly controlled by the state. flag The decision overturns a Pennsylvania Supreme Court ruling that granted immunity and affirms a New York court’s finding that NJ Transit is not state-affiliated. flag The ruling, the first major decision of the 2026 term, clarifies that state-created corporations do not automatically inherit sovereign immunity, especially when federal jurisdiction applies.

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