The 1998 Securities Litigation Uniform Standards Act (SLUSA) prohibits suits on behalf of 50 or more plaintiffs alleging state law claims of misrepresentation or manipulative acts in connection with the purchase or sale of a federally registered security.  Though noting a divergence of views on the subject, this decision joins the Third District in holding that the dismissal of a class action on the ground it violates this SLUSA prohibition is a dismissal for lack of jurisdiction under Rule 12(b)(1), not a dismissal on the merits under Rule 12(b)(6).  So a dismissal under SLUSA is without prejudice to the plaintiff’s refiling (in either state or federal court) an individual, non-class action alleging state law securities claims or a federal class action alleging federal law claims.

Ninth Circuit Court of Appeals (Korman, J., sitting by designation); August 24, 2017; 2017 WL 3623284