The reason that this time period was chosen is because SLUSA
and Regulation FD passage took place during this period (1998 and 2000 respectively).
In October 2011, Dallas federal judge David Godbey ruled that SLUSA
preempted the state law class-action litigation, noting that many investors sold securities to invest in the CDs, but the 5th U.
So in 1998, Congress passed SLUSA
as an attempt to stop plaintiffs from circumventing the PSLRA.
preempts only claims that are "in connection with
More recently, the Court decided several cases in which defendants invoked the protective provisions of the SLUSA
and the PLSRA.
98) In general, SLUSA
applies to lawsuits in which damages are sought on behalf of more than 50 people.
One problem is that a stockholder action based on the duty of candor might be deemed to be a (direct) class action, precluded under SLUSA
even though it seeks recovery by the corporation.
applied to class action lawsuits "in connection with the purchase or sale" of securities, some courts concluded that so-called "holder" lawsuits could proceed in state court.
Because of this, a material misrepresentation or omission in connection with the merger is a 'necessary component' of plaintiffs' claim and such a claim is precluded by SLUSA
1503, 1507 (2006), that SLUSA
operates to preempt even those state class action claims for which there is no federal right of recovery.
Editorial covers such topics as alleged securities fraud, insider trading and other violations of federal securities laws, SEC proposed regulatory changes, SLUSA
, fiduciary duty to shareholders and accountant liability.
of 1998 establishes uniform national rules for securities class actions involving national capital markets.