Circuit Split — CAFA V. Securities Act § 22(a)

Law360, New York (February 2, 2009, 12:00 AM EST) -- There is a split in authority in the circuit courts over whether class actions filed under the Securities Act of 1933[1] (“Securities Act”) may be removed from state to federal court under the Class Action Fairness Act of 2005 (“CAFA”).[2]

The Ninth Circuit has concluded that Securities Act class actions are not removable under CAFA, and the Seventh Circuit has reached the opposite conclusion.

This circuit split could encourage the type of forum shopping Congress intended to eliminate and is especially important today because a large...
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