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08 | 1 | 2006 Posted By James Streett

Court of Appeals Holds TCPA Applies to Marketing and Sale of Securities.

The Court of Appeals entered a significant opinion yesterday affecting the scope of Tennessee Consumer Protection Act claims.  For more than 15 years, federal and state courts in Tennessee have held that the TCPA does not cover claims related to the marketing and sale of securities.  However, the Court of Appeals addressed this question anew in light of the Tennessee Supreme Court's more recent decision in Myint v. Allstate Ins. Co., 970 S.W.2d at 926 (holding that the TCPA applies to the acts and practices of insurance companies).

The Court agreed with the Appellants that, for the last 15 years, the law on this issue has been "spinning off in the wrong direction."  After a well reasoned analysis of current statutory and case law, the Court held that the TCPA does in fact cover the marketing and sale of securities.  Accordingly, the trial court's dismissal of the Plaintiff's TCPA claims was reversed.

The case is Johnson, et al. v. John Hancock Funds, et al.  Read the opinion here.