Law Commons^™

Dismissing How The Purchaser-Seller Rule Affects Slusa, Stacy A. Manning

Seventh Circuit Review

The Securities Litigation Reform Act ("SLUSA") grants exclusive federal jurisdiction to securities actions where plaintiffs have purchased or sold securities. Similarly, the Supreme Court case, Blue Chip Stamps v. Manor Drug Stores, requires that only purchasers and sellers of securities may bring private securities actions under federal securities law. This article discusses the cases of Kircher v. Putnam Funds Trust and Putnam Investment Management, LLC, et al., where the Seventh Circuit held that the purchaser-seller rule announced in Blue Chip Stamps did not affect SLUSA's coverage and that therefore a claim brought by a plaintiff class comprised entirely …