Susan M. Greenwood | Bloomberg Law Atkinson v. Morgan Asset Management, Inc., No. 09-06265, 2011 BL 230130 (6th Cir. Sept. 8, 2011) Although a class of mutual fund shareholders (Plaintiffs) looked for loopholes in the Securities Litigation Uniform Standards Act of 1998 (SLUSA), the U.S. Court of Appeals for the Sixth Circuit held that their state law claims "'meet the relatively straightforward requirements'" for dismissal under SLUSA. Plaintiffs, the Court explained, were shareholders in mutual funds (Funds) issued by Morgan Keegan Select Fund, Inc. When their shares lost value in 2007 and 2008, Plaintiffs filed 13 state law claims alleging fraud by the Funds' officers and directors, advisers, distributor, auditor, and affiliated trust company (collectively, Defendants). After Defendants removed the action to federal court, the U.S. District Court for the Western District of Tennessee dismissed the action pursuant to SLUSA.
No Escape from SLUSA
— Holders Need Not Apply for SLUSA Exemption
— Fraud by Any Other Name Is Still Fraud
— No Artful Amendment
To view additional stories from Bloomberg Law® request a demo now