American Bank v. City of Menasha

In class action alleging that defendant-City violated federal securities law by failing to disclose to prospective bond buyers material information about conversion of power plant that was subject of said bonds, Dist. Ct. erred in staying under subsection 4(b)(3)(D) of SLUSA state court action filed by one named plaintiff in federal class action, which sought under Wisconsin Public Records Law large number of records relating to power plant conversion project. Instant request for records under Wisc. statute did not constitute discovery demand for purpose of seeking stay under SLUSA and was otherwise outside purpose for seeking stay of state-court discovery under SLUSA where requesting party would be responsible for costs expended to comply with request.