Alpha Corp., headquartered in State X, enters into a contract with Beta LLC, based in State Y. A dispute arises concerning the contract's interpretation, and Beta files a lawsuit in State Z federal court, citing diversity jurisdiction. Alpha believes that State Z is an improper venue and requests a transfer to State X. Under the principles of venue and transfer in federal court, which of the following is correct?
Venue transfer is restricted once a lawsuit is filed in a federal court.
State Z remains the venue since the lawsuit was filed there based on diversity jurisdiction.
State X is the venue because it is the principal place of business of the defendant.
State Y is the venue because it is the plaintiff's place of business.
State X is the venue because it is the principal place of business of the defendant, Alpha Corp. Federal venue statutes allow for transfer to the defendant's principal place of business when the current venue is improper.
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