A Different Claim Aggregation Method To Avoid SLUSA
August 15, 2014, 10:16 AM EDT
Law360, New York (August 15, 2014, 10:16 AM EDT) -- As professor John Coffee and others have recognized, many plaintiffs have secured significant recoveries by opting out of federal securities fraud class actions to pursue their own individual actions. These opt-out actions have returned substantial sums to investors and usually proceed under state law in state courts.
Why do securities fraud plaintiffs avoid federal court? Ostensibly aimed at securities fraud class actions, the Securities Litigation Uniform Standards Act (SLUSA) broadly defines covered class actions in a way that allows it to sweep many individual actions within...