September 5, 2017
Willkie submits brief in support of petitioners in Cyan, Inc., et al. v. Beaver County Employees Retirement Fund, et al., No. 15-1439.
On September 5, Willkie submitted an amicus curiae brief to the Supreme Court of the United States on behalf of the Securities Industry and Financial Markets Association (“SIFMA”), the Chamber of Commerce of the United States of America (the “Chamber”), and the National Venture Capital Association (“NVCA”) in support of petitioners in Cyan, Inc., et al. v. Beaver County Employees Retirement Fund, et al., No. 15-1439. The question presented in Cyan is whether state courts lack subject matter jurisdiction over covered class actions that allege only claims under the Securities Act of 1933 (the “’33 Act”).
The amicus brief argues that ’33 Act class actions should be subject to exclusive federal jurisdiction, as Congress mandated in Securities Litigation Uniform Standards Act of 1998 (“SLUSA”). First, SLUSA furthered strong federal interests by requiring that ‘33 Act class actions be heard in federal court. The proliferation of ’33 Act class actions in state courts, if left unchecked, will have severe negative consequences for the nation’s capital markets. For example, if state courts retain jurisdiction to hear ’33 Act claims, the availability of multiple, conflicting state and federal fora will sow uncertainty among issuers and underwriters concerning how the law that governs their conduct will be construed and applied. Heightened uncertainty will increase the risk to issuers and underwriters of raising capital in the United States, and this increased risk is ultimately passed on to investors in myriad ways. Second, only exclusive federal jurisdiction comports with SLUSA’s plain language and purpose.
This matter was handled by partners James Dugan and Mary Eaton and associates Frank Scaduto and Stephanie Klock.
