State courts have jurisdiction over federal securities class actions involving the securities registration and offering process, the U.S. Supreme Court held March 20.
The Securities Litigation Uniform Standards Act of 1998 “says what it says—or perhaps better put here, does not say what it does not say,” Justice Elena Kagan wrote for the unanimous court.
Investors generally view state courts as friendlier venues for securities class actions. Companies argue keeping all securities litigation in federal court helps maintain uniformity.
Telecommunications company Cyan Inc. tried to avoid an inventor suit by arguing that Congress intended to strip states of...