Federal Court Holds That SLUSA Allows Removal of 1933 Class Action to Federal Court


On August 23, 2012, the District Court for the Northern District of California issued an opinion that analyzed whether class action lawsuits brought under the Securities Act of 1933 (the "1933 Act") were removable to federal court. There is currently a split among district courts on whether these 1933 Act class actions are removable. Ultimately, Judge Maxine Chesney held that 1933 Act class actions are covered by the Securities Litigation Uniform Standards Act (SLUSA) and thus are removable to federal court.