On January 6, 2010, in Kircher v. Putnam Funds Trust, the Illinois Appellate Court reversed the circuit court and remanded the case for dismissal, holding that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) precluded the plaintiffs’ class action lawsuit against defendants alleging state law claims that their investments were diluted by the defendants’ market timing activities that were brought to light in September 2003. The defendants had removed the lawsuits to federal court and argued that SLUSA precluded such lawsuits from being filed and therefore the district court should dismiss the action. After a long battle over appropriate jurisdiction at the federal level that eventually led to a U.S. Supreme Court decision in June 2006, the case was sent back to the state level. In arriving at its decision, the Illinois Appellate Court explained that SLUSA does not actually preempt any state law cause of action but simply denies plaintiffs the right to use the class action device to vindicate certain claims. Under the terms of SLUSA, an action will be dismissed if it is (1) a covered class action, (2) that is based on a state law, (3) alleging a misrepresentation or omission of material fact or use of any manipulative or deceptive device or contrivance, (4) in connection with the purchase or sale of a covered security. After over six years of back and forth in multiple courts, the Illinois Appellate Court held that the action was indeed precluded by SLUSA .