Effective Securities Class Action Defense Post-Cyan
By Doug Greene and Jessie Gabriel (June 29, 2018, 2:26 PM EDT) -- On March 20, 2018, the U.S. Supreme Court unanimously held in Cyan Inc. v. Beaver County Employees Retirement Fund[1] that securities plaintiffs could bring class actions under the Securities Act of 1933 in state courts. At the same time, a related Section 10(b) class action under the Securities Exchange Act of 1934 may proceed in federal court. In any case involving a registered offering, the defendants must now brace for these parallel proceedings. Competition among plaintiffs securities law firms suggests these firms will file in multiple states to attempt to get around the traffic in the state where the company defendant is headquartered. And there is no device for consolidating state court and related federal court suits....
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