Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Friday, March 29, 2024 | Back issues
Courthouse News Service Courthouse News Service

Court Allows Class Action Against Lord Abbett Co.

(CN) - The 3rd Circuit allowed a group of mutual fund investors to proceed with a class action accusing the Lord Abbett Co. of charging excessive fees and using the money to market the funds to other investors.

The district court ruled that the entire lawsuit should be thrown out because it includes some state-law claims that are pre-empted by the Securities Litigation Uniform Standards Act (SLUSA).

Judge Roth of the Philadelphia-based federal appeals court overturned that decision and remanded.

"It is entirely consistent with the purposes of SLUSA to require the dismissal of those state law claims that are clearly pre-empted by the statute," Roth wrote.

"To require the dismissal of all of the other claims in the same action would not appear to serve those goals and is not supported by the plain language or legislative history."

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...