Brink v. Raymond James & Associates, Inc., No. 16-14144 (11th Cir. 2018)Annotate this Case
The Eleventh Circuit reversed the district court's dismissal of plaintiff's putative class action complaint alleging state law claims for breach of contract and negligence. Plaintiff claimed that because Passport Account customers had agreed only to pay for "expenses incurred in facilitating the execution and clearing" of their trades, RJA's undisclosed profit built into the Processing Fees breached the Passport Agreement. The court held that the Securities Litigation Uniform Standards Act of 1998 (SLUSA) did not prohibit plaintiff's putative class action because RJA's alleged failure to disclose the hidden profit built into the Processing Fee was not a misrepresentation of a material fact for purposes of SLUSA. Accordingly, the court remanded for further proceedings.