Pension Committee of University of Montreal Pension Plan v. Banc of America Securities, LLC

OPINION AND ORDER

SHIRA A. SCHEINDLIN, District Judge:

I. INTRODUCTION

The Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) preempts state-law actions in which a plaintiff alleges “an untrue statement or omission of a material fact in connection with the purchase or sale of a covered security." 1 The question presented here is whether SLU-SA preemption applies where plaintiffs purchased, sold, or held shares in hedge funds that are not covered securities under SLUSA but that maintain a portfolio that includes covered securities. For the reasons stated below, I conclude that SLUSA…