Nationwide Evades Revenue-Sharing Class Action

Law360, New York (February 4, 2010, 2:31 PM EST) -- A federal appeals court has thrown out a Florida sheriff's putative securities class action against Nationwide Life Insurance Co. and two affiliates alleging they breached fiduciary duties and unjustly enriched themselves through revenue-sharing payments tied to a deferred compensation plan.

The Securities Litigation Uniform Standards Act of 1998 precludes Jerry L. Demings' suit, a three-judge panel of the U.S. Court of Appeals for the Sixth Circuit ruled Wednesday.

SLUSA provides that private, state law “covered” class actions alleging untruth or manipulation in connection with the purchase...
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