Investors Win at U.S. High Court on Securities-Fraud Suit Sites

Investors can press some securities-fraud suits in plaintiff-friendly state courts, the U.S. Supreme Court ruled in a setback to the financial-services industry (Merrill Lynch Pierce Fenner & Smith Inc. v. Manning, 2016 BL 154332, U.S., 14-cv-01132, 5/16/16).

The court unanimously sided with investors on the proper forum for a suit that blames securities firms including Bank of America’s Merrill Lynch for driving down the stock price of Escala Group Inc., a seller of collectible stamps and coins.

The court said the 1934 Securities Exchange Act lets state courts handle claims filed under their own investor-protection laws ...