Merrill Lynch, Pierce, Fenner & Smith Inc. v. Dabit
United States Supreme Court
547 U.S. 71 (2006)
Shadi Dabit (plaintiff), a former broker at Merrill Lynch (defendant), brought a class action suit against Merrill Lynch, alleging that it had disseminated false research. Dabit commenced the suit under Oklahoma law, but removed the case to federal court. Many other similar claims were brought at this time, all of which were removed to the United States District Court for the Southern District of New York. The district court ruled that Dabit’s claim was preempted by the Securities Litigation Uniform Standards Act of 1998 (SLUSA). The court of appeals vacated the district court’s judgment, stating the SLUSA only applied to class actions involving the purchase or sale of securities, not the holding of securities as a result of false information. Merrill Lynch then petitioned for certiorari to the United States Supreme Court.
Rule of Law
Holding and Reasoning (Stevens, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 170,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.