Securities lawsuits in state courts
Cyan v. Beaver County Employees Retirement Fund
In brief
The Supreme Court agreed with the California appeals court and left its decision in place.
- Where it stands
- Decided
Decided 9-0 · March 20, 2018 · Opinion by Justice Kagan
- What it’s about
- Beaver County Employees Retirement Fund brought a class action against Cyan in California state court, alleging violations of the Securities Act of 1933; Cyan argued that federal law barred state courts from hearing the case and allowed it to be moved to federal court.
- Who it affects
- The California appeals court's decision remains in place in the class action between the fund and Cyan.
Summary: written with AI from the case record.
What it's about
The Supreme Court unanimously agreed with the California appeals court that state courts can hear class actions alleging only those claims and that defendants cannot move them to federal court under that law.
The dispute asked whether state courts can hear class actions alleging only claims under the Securities Act of 1933.
Question presented
Whether state courts lack subject matter jurisdiction over covered class actions that allege only '33 Act claims.
What the Court decided
Holding
Adjudged to be AFFIRMED. Kagan, J., delivered the opinion for a unanimous Court.
- Result
- Affirmed
The vote
What's next
The Supreme Court has finished this docket action, leaving the California appeals court's decision in place.
Each side's argument
- Beaver County Employees Retirement Fund
- The fund alleged in its class action that Cyan violated the Securities Act of 1933.
- Cyan, Inc.
- Cyan argued that federal law barred state courts from hearing the case and allowed it to be moved to federal court.
Documents
Docket activity
New analysis added
AI analysis generated: Case Briefing
New analysis added
AI analysis generated: Decision Record
Case data updated: summary, question_presented, generation_metadata
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Case data updated: question_presented, extraction_metadata
Opinion added: Opinion
Opinion added: opinion
Brief added: Questions Presented
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.