On May 18th, the California Appellate Court held that the California state courts have jurisdiction over a putative class action lawsuit alleging that defendants' offering materials for mortgage-backed securities contained fraudulent misrepresentations in violation of the Securities Act. The trial court had granted defendants' demurral, finding that it lacked jurisdiction. Reinstating the case, the Appellate Court held that the state courts have concurrent jurisdiction with the federal courts because the case does not involve a covered security, one which is traded on a national exchange. Luther v. Countrywide Financial Corp.