The U.S. Supreme Court has agreed to review whether states’ jurisdiction over security class actions under the Securities Act of 1933 was nullified by the Securities Litigation Uniform Standards Act of 1998 (SLUSA). According to Law360, this will help resolve the difference in interpretations that have been issued by lower courts across the country.
“The divisiveness among the lower courts is extreme,” said Pillsbury Litigation partner Sarah Good. “The district courts of the Second and Ninth circuits are at loggerheads, and the pace of the filing of such suits in California state courts has accelerated.”
According to Good, California has seen an increase in 1933 Act suits as technology companies continue to expand, making this matter of “particular importance” in the state.
"If, for example, the Supreme Court was to find in favor of the underlying plaintiff, then I think we could expect to see even more escalation of securities class actions in the California state courts, as well as other state courts," she told Law360.
Read more about securities class action suits on Law360.