TD Ameritrade Beats Appeal in Customer Tax-Loss Harvesting Suit

TD Ameritrade Holding Corp. and affiliates won dismissal of breach of contract and negligence allegations stemming from a tax-loss harvesting tool glitch after the Eighth Circuit on Thursday affirmed federal law precludes the would-be class claims.

A customer filed the proposed class action after the broker’s TLH tool failed to promptly reinvest funds it had sold at a loss to offset capital gains. But the district court correctly determined the Securities Litigation Uniform Standards Act precluded the customer’s state law claims, the U.S. Court of Appeals for the Eighth Circuit said.

SLUSA, enacted to keep securities investors from disguising ...