Supreme Court Considers Whether State Courts Have Jurisdiction Over Class Actions Alleging Only Claims Under the Securities Act of 1933
The Supreme Court heard oral arguments in Cyan, Inc. v. Beaver County Employees Retirement Fund, No. 15-1439, on Tuesday, November 28, 2017, to decide if a class action alleging only violations of the Securities Act of 1933 may be brought in state court. Congress passed the Securities Act of 1933 (“the ’33 Act”) in the midst of the Great Depression, requiring securities issuers to file registration statements and offering documents with the Securities and Exchange Commission. Pursuant to the ’33 Act, persons who acquire a registered security may bring suit against an issuer and, in certain situations, underwriters for materially false or misleading statements or omissions made in a registration statement or offering document. As originally passed, the ’33 Act provided for concurrent jurisdiction, meaning that a plaintiff could bring such a claim in either state or federal court.