Breaking with a recent 9th Circuit opinion, the 7th Circuit has made it tougher for plaintiffs to keep securities class actions in state court by claiming that the 2005 Class Action Fairness Act's preference for federal jurisdiction trumps the Securities Act of 1933. The court held that a provision in the 1933 act does not prevent removal of state class actions to federal court when other requirements of the more recent CAFA are met.
7th Circuit Makes It Harder for Plaintiffs to Keep Securities Class Actions in State Court
The National Law Journal
January 12, 2009