Kircher v. Putnam Funds Trust
- Case Date: 3/27/2006
- Project Name: Class Action Reform
On June 15, 2006, the U.S. Supreme Court held that securities-law class action defendants do not have the right to appeal from rulings that keep their cases in state courts rather than federal courts. The decision was a setback for WLF, which filed a brief urging the Court to recognize such an appeal right. The case arose under the Securities Litigation Uniform Standards Act of 1998 (SLUSA), a law designed to curb abusive class action claims for securities fraud. SLUSA made federal courts the exclusive venue for most securities fraud class action litigation. The defendants (a group of mutual funds) invoked SLUSA to move their case to federal court after initially being sued in state court. The district court sent the case back to state court, and the defendants appealed from that decision. Although seemingly agreeing with the defendants that the case belonged in federal court and that the remand order was in error, the Supreme Court held that the remand order was unappealable.
More Information and Downloads:
3/24/2006: Download the Brief
Litigation Update: High Court Declines to Bolster Appeal Rights in Securities Cases