Can You Bring A Securities Class Action Based On ’33 Act Claims In State Court?

The federal district court split over whether SLUSA bars the bringing of a securities class action alleging ’33 Act claims in state court continues. In Zia v. Medical Staffing Network, Inc., 2004 WL 2093505 (S.D. Fla. Sept. 16, 2004), the court held that SLUSA only permits the removal to federal court of securities class actions based on state law. Accordingly, the case was remanded. The decision notes, however, that the issue is currently before the U.S. Court of Appeals for the Eleventh Circuit in another case – ATC Enter., Inc. v. Williams – and oral argument was set to occur in September.