Professional Management Associates, Inc. Employees' Profit Sharing Plan, on Behalf of Itself and All Others Similarly Situated v. Kpmg LLP

This case involved KPMG employees who participated in their company's profit-sharing plan. These employees claimed that KPMG made false statements and failed to disclose important information when their profit-sharing plan purchased stock in a company called Green Tree. The employees believed these misrepresentations caused them financial losses and wanted to sue KPMG as a group (class action lawsuit). The court dismissed the case entirely. The Eighth Circuit Court of Appeals agreed with a lower court's decision that federal securities law prevented this type of lawsuit from moving forward. Under a law called SLUSA (Securities Litigation Uniform Standards Act), certain securities-related claims must be handled under federal securities rules rather than as regular class action lawsuits. This ruling matters for workers because it shows the limits of how employees can challenge investment decisions affecting their retirement benefits. When profit-sharing plans or 401(k) plans make investment choices that employees believe are harmful, workers may have limited options for legal recourse. The case demonstrates that securities laws can override traditional employment law claims, potentially making it harder for groups of employees to sue their employers over investment-related losses in their retirement accounts.