Disaggregated Classes

Abstract

Federal efforts to reform federal securities class actions now reverberate in state courts and in individual actions. This article explores emerging consequences driven by national litigation trends and the Securities Litigation Uniform Standards Act (SLUSA). I argue that a new dynamic, class disaggregation, has begun to occur. Individual investors may be following institutional investors into state courts in search of better litigation outcomes. Given these developments, I argue that Congress should consider further reforms to level the field and ensure that private parties resolve disputes involving national market securities under consistent standards.