Number: RS22311
Title: State Securities Class Action Suits: Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit
Authors: Michael V. Seitzinger, American Law Division 
Abstract: The Second Circuit held that in certain instances the federal Securities Litigation Uniform Standards Act of 1998 (SLUSA) does not preempt securities state class action suits. Four months after the Second Circuit decision, the Seventh Circuit took a very different approach to the issue. On March 21, 2006, the Supreme Court unanimously (Justice Alito took no part in consideration of the case.) vacated the judgment of the Second Circuit and held that the background, text, and purpose of SLUSA's pre-emption provision indicate that SLUSA pre-empts state law holder class action claims of the type that Dabit alleges.
Pages: 4
Date: March 23, 2006