Cyan, Inc. v. Beaver County Employees Retirement Fund
- Case Date: 9/5/2017
- Project Name: Civil Justice Reform
On September 5, 2017, WLF filed a brief in the U.S. Supreme Court, urging it rule that state courts lack jurisdiction to hear securities fraud claims arising under the Securities Act of 1933. WLF argued that Congress adopted SLUSA (the Securities Litigation Uniform Standards Act) in 1998 in response to concerns that some state courts were permitting vexatious securities lawsuits to proceed to trial. SLUSA preempted all state-law claims that public companies had misled investors and decreed that suits alleging violation of federal securities laws should be heard in federal court, not state court. But in recent years, California courts claim to have identified a loophole in SLUSA that permits claims arising under the Securities Act of 1933 (a law that authorizes damages claims if a registration statement includes misleading information) to be filed in state court. WLF urged the Supreme Court to rule that no such loophole exists and that ’33 Act claims must be filed in federal court.
|Oral argument held November 28, 2017. Awaiting decision.|
More Information and Downloads:
9/5/2017: Download the Brief