Supreme Court decides Merrill Lynch v Dabit

• Holds that SLUSA preempts state law securities actions brought by holders

• Those investors who claim they would have sold
  but for an alleged misstatement or omission

• Closes a loophole used by plaintiffs lawyers to bring parallel class action claims in state court

• Supreme Court opinion 3.21.06

• Petitioner's brief
• Respondent's brief
• Petitioner's reply brief

• Commentary

• Wachtell Lipton
• Skadden Arps
• Debevoise

Final Release 33-8591 2005

Hyperlinked outline

Liability issues IV

• Information conveyed by the time of sale for purposes of §12(a)(2) and §17(a)(2) liability IV.A

• Interpretation and rule IV.A.1
• Guidance re: interpretation and Rule 159 IV.A.2
  ◊ §12(a)(2)/§17(a)(2) analysis of information conveyed  IV.A.2.a
  ◊ Determination of time of sale IV.A.2.b
  ◊ Termination of old contract;
      Creation or reformation of new contract IV.A.2.c

• Issuer as seller IV.B
• Due diligence interpretation IV.C

Final Release 33-8501 (2004)

Liability issues IV

• Information conveyed by the time of sale for purposes of §12(a)(2) and §17(a)(2) liability IV.A

• Rule 412 IV.A.1
• Relationship of interpretation and proposed rule to §11 liability IV.A.2

• Issuer as seller IV.B

Controlling Person Liability