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Home / Opinions / Courts / 8th U.S. Circuit Court of Appeals / Securities: Unauthorized Trading – Individual Claims – Analysis

Securities: Unauthorized Trading – Individual Claims – Analysis

(1)Where investors argued that the district court used the criteria for class certification to dismiss not only their class claims but their individual claims as well, a Rule 12(b)(6) motion to dismiss individual securities claims requires the court to decide whether the complaint meets the heightened pleading standard, so the court erred in dismissing the individual claims without  either staying the claims pending arbitration or undertaking an analysis of the claims under the Private Securities Litigation Reform Act.

(2)Where investors sued a broker for churning, unauthorized trading and misrepresentation, the individualized nature of the claims made them insufficient as class claims, so the district court properly found the plaintiffs’ complaint failed to state viable class claims.

Judgment is affirmed in part; reversed in part; remanded.

McCrary v. Stifel, Nicolaus & Company (MLW No. 63995/Case No. 11-1213 – 12 pages) (U.S. Court of Appeals, 8th Circuit, Shepherd, J.) Appealed from U.S. District Court, Eastern District of Missouri, Jackson, J. (Bradley P. Schneider, St. Louis, argued for appellant; Lewis Steven Goldblatt appeared on the brief) (Lisa A. Nielsen, St. Louis, argued for appellee; Donald D. McBride II appeared on the brief).

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