State Court Jurisdiction Over SLUSA "Covered Class Actions"
NCLC urged the California Supreme Court to review a lower court decision that incorrectly held that, post-SLUSA, state courts retain concurrent jurisdiction to hear class actions brought under federal securities law, where no state law claims have been pressed. The plaintiffs in this case brought claims under the federal Securities Act of 1933 in connection with 429 Countrywide securities. NCLC argued that the court of appeals decision is at odds with the plain language and the intent of SLUSA, and the decision is contrary to the holding of every federal court that has addressed the issue. If the decision is left to stand, it will further burden California's courts with federal securities litigation, as California will become the only state in the nation to permit class action plaintiffs to circumvent SLUSA.
The California Supreme Court denied review.
Amicus letter filed 7/21/11. Review denied 9/14/11.