Rainero v. Archon Corp.

The Securities Litigation Uniform Standards Act does not confer federal jurisdiction over a complaint alleging state law securities claims within the exception to SLUSA’s general prohibition of state law securities class actions, except for the limited purpose of determining whether a putative class action is banned by SLUSA’s general preclusion of such suits.  The Securities Litigation Uniform Standards Act (SLUSA, codified at 15 USC § 77p) does not confer federal jurisdiction over a complaint alleging state law securities claims within the exception to SLUSA’s general prohibition of state law securities class actions.  SLUSA does allow a limited removal of state law securities class actions for the purpose of determining whether they are banned by SLUSA’s general preclusion of such suits.  But once it is determined that the action falls within the exclusion, there must be some other basis for a federal court to exercise jurisdiction over the suit.

Ninth Circuit Court of Appeal (Thomas, C.J.); December 21, 2016; 844 F.3d 832

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