Law360, New York (April 24, 2015, 10:54 AM EDT) -- On March 30, 2015, the U.S. District Court for the Southern District of New York dismissed claims in a putative class action against New York-based hedge fund manager Philip A. Falcone, his advisory firm Harbinger Capital Partners and its affiliates.[1] The court held that the plaintiffs' state law claims of fraud and negligent misrepresentation were precluded by the Securities Litigation Uniform Standards Act of 1998.[2] The court rejected the plaintiffs' use of "artful pleading" and found that the state law fraud and misrepresentation claims relating to a security not covered under the SLUSA were "inevitably intertwined" with the allegations relating to the Harbinger funds' purchase of SkyTerra Communications Inc., a "covered" security under SLUSA.[3] Accordingly, the court held that the claims were precluded by the SLUSA because the alleged fraud was perpetrated "in connection with" the purchase of covered securities....