According to Justice Stevens and the rest of an 8-0 Court, the Securities Litigation Uniform Standards Act of 1998 applies to purchases, sales, and holds. The unanimous opinion in Merrill Lynch v. Dabit relied heavily on Judge Easterbrookâs 7th Circuit opinion in Kircher v. Putnam Funds Trust.
The Court seized the pithe of real federalism, rejecting a system of “parallel class actions proceeding in state and federal court, with different standards governing claims asserted on identical facts.” Justice Stevens articulated the guiding principle of the decision, “The magnitude of the federal interest in protecting the integrity and efficient operation of the market for nationally traded securities cannot be overstated.”