On March 21, 2006, the U.S. Supreme Court reversed a lower court’s restrictive interpretation of the Securities Litigation Uniform Standards Act of 1998, or “SLUSA.” In that statute, Congress acted to curb abusive class action claims in state court for securities fraud. The appeals court in this case read a restriction into the statute’s preemption provision, holding that it allows suits to proceed in state court on behalf of persons who merely hold, rather than purchase or sell, securities. In its brief filed in the Supreme Court on November 14, 2005, WLF argued that SLUSA’s language preempts “holder” claims as well as purchaser and seller claims. WLF noted that SLUSA was intended to protect the federal policy of encouraging efficient securities markets by preventing circumvention of Securities Litigation Reform Act of 1995. WLF’s brief also argued that a broad reading of SLUSA is consistent with principles of federalism.