The Supreme Court agreed on Tuesday to consider whether state courts can hear some investor lawsuits, but declined a case challenging a time limit for filing securities cases, following a similar decision Monday against the $324.7 billion California Public Employees' Retirement System, Sacramento.
Accepting the state court issue raised in Cyan Inc. vs. Beaver County (Pa.) Employees Retirement Fund, the justices will revisit a 1998 securities law that limits jurisdiction of state courts in certain securities violations. The pension fund brought the suit after stock purchased during an initial public offering allegedly included altered and misleading statements.
A California appeals court ruled that state courts do have jurisdiction, and the U.S. solicitor general agreed, urging the Supreme Court to grant review to resolve an issue "that has generated confusion in lower courts," according to the government's amicus brief.