Asked by Alfred Lopez on Apr 25, 2024
Verified
In a unanimous 2018 decision, the U.S. Supreme Court held that under the Securities Litigation Uniform Standards Act of 1998, (1) state courts have jurisdiction over class actions alleging violations of only the 1933 Act and (2) defendants are not permitted to remove such actions from state court to federal court.
Securities Litigation Uniform Standards Act of 1998
A United States federal law that preempts class-action lawsuits related to securities fraud from being brought under state law, requiring instead that they be brought under federal law.
1933 Act
Also known as the Securities Act of 1933, it's a U.S. law enacted to ensure that investors receive significant information regarding securities being offered for public sale, and to prevent deceit, misrepresentations, and other frauds in the sale of securities.
State Court
A court that has jurisdiction over disputes with some connection to a U.S. state, as opposed to the federal court system.
- Comprehend the functions and organization of the Securities and Exchange Commission (SEC).
Verified Answer
FH
Faisal Hamayon6 days ago
Final Answer :
True
Explanation :
The U.S. Supreme Court's decision in Cyan, Inc. v. Beaver County Employees Retirement Fund affirmed that state courts have jurisdiction over class actions based on the Securities Act of 1933 and that such cases cannot be removed to federal court, upholding the dual jurisdiction system for securities litigation.
Learning Objectives
- Comprehend the functions and organization of the Securities and Exchange Commission (SEC).