On September 8th, the Sixth Circuit affirmed the dismissal of a state-law class action filed by mutual-fund shareholders against various fund affiliates. The district court held that the Securities Litigation Uniform Standards Act ("SLUSA") barred the claims, and the Sixth Circuit agreed. The "Delaware carve-out," which preserves a class action otherwise facing SLUSA preclusion if it involves the purchase or sale of securities by the issuer or an affiliate of the issuer exclusively from or to holders of equity securities of the issuer, did not exempt this lawsuit because the plaintiffs did not purchase or sell their shares. Instead, they continued to hold them. Moreover, plaintiffs' complaint alleged misrepresentations and omissions, which are precluded by SLUSA. Atkinson v. Morgan Asset Management, Inc.