On March 20, 2018, the Supreme Court issued a unanimous decision penned by Justice Kagan in Cyan, Inc. v. Beaver County Employees Retirement Fund, No. 15-1439, holding that the Securities Litigation Uniform Standards Act of 1998 (SLUSA) did “nothing to strip state courts of their longstanding jurisdiction to adjudicate class actions alleging only 1933 Act violations” because the “statute says what it says—or perhaps better put here, does not say what it does not say.” In reaching its decision, the Court recognized that SLUSA “bars certain securities class actions based on state law” and “says nothing, and so does nothing, to deprive state courts of jurisdiction over class actions based on federal law.” Finally, the decision also holds that SLUSA did not “authorize removing such suits from state to federal court.”
In short, Cyan holds that “[s]tate-court jurisdiction over 1933 Act claims thus continues undisturbed.”
The case is Cyan, Inc. v. Beaver County Employees Retirement Fund, No. 15-1439 (U.S. Mar. 20, 2018).