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Supreme Court: SLUSA does not prohibit state court jurisdiction over Securities Act class actions

Overview

The Supreme Court has delivered a unanimous opinion in the highly anticipated case of Cyan, Inc. v. Beaver County Employees Retirement Fund, No. 15-1439, holding that (1) the Securities Litigation Uniform Standards Act of 1998 (SLUSA) does not strip state courts of subject matter jurisdiction in lawsuits solely alleging claims under the Securities Act of 1933 (the Securities Act); and (2) SLUSA does not permit defendants to remove to federal court a purported class action filed in state court alleging only Securities Act claims.

 

This case study examines the key points of the decision.