- Category
- Client Alerts
- Date
- Feb. 09, 2009
- Title
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Securities Litigation Alert: Third Circuit Holds That Under SLUSA the Presence of Some Preempted State Claims Does Not Require Dismissal of an Entire Class Action - In re Lord Abbett Mutual Funds Fee Litigation
On January 20, 2009, the United States Court of Appeals for the Third Circuit announced its decision in White v. Lord Abbett & Co. LLC (In re Lord AbbettMutual Funds Fee Litigation), holding that the presence of one or more claims preempted by the Securities Litigation Uniform Standards Act (“SLUSA”) did not automatically require dismissal of the entire securities class action. After examining statutory language, legislative intent and relevant case law, the court held that Congress did not intend that all claims must be dismissed when an action includes some claims that cannot be maintained under SLUSA. The court held that dismissing state claims preempted under SLUSA, while allowing the non-offending federal claims to proceed, is consistent with SLUSA’s purposes of preventing abuses in private securities fraud and promoting a uniform federal standard governing all nationally- traded securities.
Related People
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Alan R. Friedman
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- Counsel
- Author
- New York
- vcard
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Arthur H. Aufses III
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- Counsel
- Author
- New York
- vcard
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