{"id":1137,"date":"2012-10-08T16:33:32","date_gmt":"2012-10-08T16:33:32","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2012\/10\/securities_roundup_slusa_bars"},"modified":"2022-03-10T16:35:32","modified_gmt":"2022-03-10T22:35:32","slug":"securities-roundup-slusa-bars","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-roundup-slusa-bars\/","title":{"rendered":"Securities Roundup: SLUSA Bars Investors\u2019 State Securities Case Alleging Trust Account Management Negligence, Blocks Investors From Remanding Fraud Case to Puerto Rico & FINRA Enhances Proposed Rules’ Cost-Benefit Analysis, Looks at Non-Traded REIT Ads"},"content":{"rendered":"

\t\t\t\tAccording to the U.S. Court of Appeals for the Sixth Circuit, the Securities Litigation Uniform Standards Act bars state law breach of contract and negligence claims related to the way the plaintiffs’ trust accounts were managed. The appeals court’s ruling affirms the district court’s decision that the claims “amounted to allegations” that the defendants did not properly represent the way investments would be determined and left out a material fact about the latters’ conflicts of interest that let them invest in in-house funds. <\/p>\n

SLUSA shuts a loophole in the Private Securities Litigation Reform Act that allows plaintiffs to sue in state court without having to deal with the latter’s more stringent pleading requirements. In Daniels v. Morgan Asset Management Inc.<\/em>, the plaintiffs sued Regions Trust, Morgan Asset Management, and affiliated entities and individuals in Tennessee state court. Per the court, Regions Trust, the record owner of shares in a number of Regions Morgan Keegan mutual funds, had entered into two advisory service agreements with Morgan Asset Management, with MAM agreeing to recommend investments to be sold or bought from clients’ trust accounts. The plaintiffs are claiming that MAM was therefore under obligation to continuously assess whether continued investing in the RMK fund, which were disproportionately invested in illiquid mortgage-backed securities<\/a> that they say resulted in their losses, was appropriate. <\/p>\n

The defendants were able to remove the action to federal district court, which, invoking SLUSA, threw out the lawsuit. The appeals court affirms this dismissal.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to the U.S. Court of Appeals for the Sixth Circuit, the Securities Litigation Uniform Standards Act bars state law breach of contract and negligence claims related to the way the plaintiffs’ trust accounts were managed. The appeals court’s ruling affirms the district court’s decision that the claims “amounted to allegations” that the defendants did […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3739,3799,4014,3741],"tags":[],"class_list":["post-1137","post","type-post","status-publish","format-standard","hentry","category-finra","category-mutual-funds","category-non-traded-reits","category-securities-fraud"],"yoast_head":"\nSecurities Roundup: SLUSA Bars Investors\u2019 State Securities Case Alleging Trust Account Management Negligence, Blocks Investors From Remanding Fraud Case to Puerto Rico & FINRA Enhances Proposed Rules' Cost-Benefit Analysis, Looks at Non-Traded REIT Ads — Investor Lawyers Blog — October 8, 2012<\/title>\n<meta name=\"description\" content=\"According to the U.S. Court of Appeals for the 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