(April 17, 2018, 10:17 AM EDT) -- NEW YORK — A policyholder’s “passive retention” of his annuity funds fails to meet the “in connection with” requirement for Securities Litigation Uniform Standards Act of 1998 (SLUSA) preclusion because an insurance company issued the misrepresentation to state regulators and not the policyholder, a Second Circuit U.S. Court of Appeals panel ruled April 10 in reversing and remanding the action with instructions to remand the action to state court (Richard O’Donnell v. AXA Equitable Life Insurance Co., No. 17-1085, 2nd Cir., 2018 U.S. App. LEXIS 8936)....