In a recent development, claims raised under the Securities Act of 1933 have been dismissed, categorized as both time-barred and otherwise lacking sufficient grounds. This dismissal holds significant implications for both corporate entities and legal practitioners alike.
According to an article published on JD Supra, the turn of events began with a Supreme Court decision taken on March 20, 2018. In the case of Cyan, Inc. v. Beaver County Employees Retirement Fund, the United States Supreme Court passed a unanimous ruling, stating that the Securities Litigation Uniform Standards Act of 1998 doesn’t rob state courts of the jurisdiction over class actions that involve claims made under the Securities Act of 1933. Moreover, it does not sanction the removal of such cases to federal courts.
The impact of this ruling is far-reaching. Since then, there has been a marked uptick in the number of state cases related to the Act. This raises new challenges for legal teams across the nation as they now need to navigate these choppy waters under the changed circumstances. The legal representatives of large corporations and law firms need to be particularly alert to these changes and their potential implications.