In Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit (2005),Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit, 395 F.3d 25 (2d Cir. 2005). Sotomayor wrote a unanimous opinion that the Securities Litigation Uniform Standards Act of 1998 did not preempt class action claims in state courts by stockbrokers alleging misleading inducement to buy or sell stocks. The Supreme Court handed down an 8–0 decision stating that the Act did preempt such claims, thereby overruling Sotomayor's decision.
