United States Second Circuit

In a securities class action dealing with ambiguities in the Securities Litigation Uniform Act of 1998 (SLUSA), the district court judgment is vacated and remanded where: 1) the alleged fraud is "in connection with the purchase or sale of a covered security"; 2) state law claims that do not depend on false conduct are not within the scope of the SLUSA, even if the complaint includes peripheral, inessential mentions of false conduct; and 3) claims accusing defendant of complicity in the false conduct that gives rise to liability are subject to SLUSA prohibition, while claims of false conduct in which the defendant is not alleged to have had any complicity are not.

Appellate Information

• Decided 04/23/2015
• Published 04/23/2015

Judges

• Leval

Court

• United States Second Circuit

Counsel