The U.S. Supreme Court on Monday called for the solicitor general to weigh in on whether it should take a case challenging if federal securities law prevents state court jurisdiction in shareholder lawsuits based solely on federal law.
The Securities Industry and Financial Markets Association, Chamber of Commerce and National Venture Capital Association have petitioned the Supreme Court to reconsider a case brought by the Beaver County Employees Retirement Fund, the Retirement Board of Allegheny County and the Delaware County Employees Retirement System in April 2014 against Cyan Inc.
The class action, pending before California Superior Court in San Francisco, alleges that Cyan failed to adequately inform investors in initial public offering documents that revenues were dependent on two limited projects that were winding down. A California appeals court rejected Cyan's federal pre-emption argument and allowed the lawsuit to proceed in state court.
