Class Action Dismissed Based on SLUSA

The Sixth Circuit Court of Appeals affirmed the dismissal of a securities class action tied to the market crisis and brought against three mutual funds issued by Morgan Keegan Select Fund, Inc., an open-ended investment company. Atkinson v. Morgan Asset Management, Inc., No. 09-6265 (6 th Cir. Sept...

SLUSA Bars Breach of Duty Claim Tangled with Misrepresentation

The Securities Litigation Uniform Standards Act of 1998 or SLUSA was passed to prevent a class action plaintiff from circumventing the stringent pleading requirements of the Private Securities Litigation Reform Act by filing in state court. The Third, Sixth and Ninth Circuits have developed different...

The Supreme Court Will Interpret SLUSA

The Supreme Court agreed to hear another securities law case. The case arises out of the litigation surrounding the Allen Stanford Ponzi scheme and involves the application of the Securities Litigation Uniform Standards Act or SLUSA. That Act generally precludes securities class action plaintiffs...

Supreme Court Court Hears Oral Argument in Stanford Ponzi Scheme-Related Cases

WASHINGTON, D.C. — (Mealey’s) Attorneys for Latin American investors in Stanford International Bank (SIB) and SIB’s insurance brokers and lawyers asked the U.S. Supreme Court on Oct. 7 to determine whether the Securities Litigation Uniform Standards Act (SLUSA) and the Securities Exchange...

Is the "Fraud on the Market Theory" About to Get Dumped?

A petition for a writ of certiorari filed last month in the U.S. Supreme Court in connection with the long-running Halliburton securities class action lawsuit – which has been up to the Supreme Court once already – takes aim at one of the critical components in the securities plaintiffs’...

U.S. Supreme Court: SLUSA Does Not Preempt Stanford Ponzi Scheme Victims’ State Law Claims

The state law fraud claims of certain victims of the Stanford Ponzi scheme against various law firms and brokerage firms are not precluded under the Securities Litigation Uniform Standards Act (“SLUSA”) and plaintiffs therefore may pursue their state law class actions against the defendants...