Zola v. TD Ameritrade, Inc., No. 16-3013 (8th Cir. 2018)
Annotate this CasePlaintiffs filed separate class action complaints against TD Ameritrade, alleging that the company breached its duty of best execution when it routed client orders to buy and sell securities to trading venues that paid TD Ameritrade top dollar for its order flow. The Eighth Circuit affirmed the district court's dismissal of the complaint because the state law claims were precluded by the Securities Litigation Uniform Standards Act of 1998 (SLUSA). In this case, the gravamen of plaintiffs' claims involved a misrepresentation or omission of a material fact in connection with the purchase or sale of a covered security.
Court Description: Wollman, Author, with Loken and Melloy, Circuit Judges] Civil case - Securities Litigation Uniform Standards Act of 1998. The district court did not err in concluding that plaintiffs' various state law claims, including a claim that defendant breached its duty of best execution when it routed client orders to buy and sell securities to trading venues that paid defendant higher fees for its order flow, were precluded by the Securities Litigation Uniform Standards Act of 1998; the gravamen of plaintiffs' claims involves a misrepresentation or omission of a material fact in connection with the purchase or sale of a covered security and the action is precluded - see Lewis v. Scottrade, Inc. 879 F.3d 850 (8th Cir. 2018), deadline for filing petition for cert. extended to May 9, 2018.
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