Naked Shorts Suit Gives High Court Chance To Curb States

Law360, New York (June 30, 2015, 7:19 PM EDT) -- In agreeing to hear a case about naked short selling, the U.S. Supreme Court on Tuesday put itself in a position to establish the extent to which federal securities laws preempt certain state-based claims and, in doing so, may further curtail state securities suits.

In a brief order, the Supreme Court added to its docket for the next term an appeal of a shareholder claim that accused Merrill Lynch Pierce Fenner & Smith Inc. and other financial firms of manipulating the price of Escala Group Inc....
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