Federal courts, and now for the first time a state court, are reaching a growing consensus that the Securities Litigation Uniform Standards Act of 1998 (SLUSA) stripped state courts of jurisdiction over certain Securities Act class actions.

While these decisions, called the “emerging trend” by one court,1 are closing a rift that has divided courts since SLUSA’s enactment, they are trial court decisions on an issue where appellate review is rarely available. The possibility that outlier decisions will reject this “emerging trend,” a possibility realized in a recent California state court ruling, means that plaintiffs may not see this consensus as a reason to halt bringing Securities Act class actions in state courts.

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