NY Rulings Show State Court Aversion To Securities Act Suits

Law360 (March 3, 2021, 5:39 PM EST) -- On Feb.16, the First Department Appellate Division of the New York Supreme Court issued a widely anticipated ruling in In the Matter of Sundial Growers Inc., in which it affirmed a trial court's dismissal of a putative class action brought under the federal Securities Act.

This ruling marks the First Department's second consecutive decision rejecting Securities Act class action claims within a matter of months, signaling a growing backlash against the influx of these suits into state courts following the U.S. Supreme Court's 2018 decision in Cyan Inc. v. Beaver County Employees Retirement Fund.

And while this ruling is welcome precedent...

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