SLUSA Allows for Legal Maneuvering
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SLUSA Allows for Legal Maneuvering

After suffering significant financial losses, a client filed a putative class action in state court against her investment advisory firm, registered broker, bank, and online trading platform operator asserting claims for breach of contract, fraud, negligence, failure to supervise, breach of fiduciary duty, and violations of Wisconsin and Nebraska securities laws. The Seventh Circuit held the suit was a “covered class action” precluded by the Securities Litigation Uniform Standards Act (SLUSA). Accordingly, the defendants could properly remove the lawsuit to federal court pursuant to SLUSA and then move to dismiss the lawsuit containing state law securities claims because it qualified as a "covered class action" that was both removable and precluded under SLUSA. 

Nielen-Thomas v Concorde Investment Serv