Securities Act Claims in New York State Court: Trends and Observations a Year After Cyan
In March 2018, in Cyan, Inc. v. Beaver County Employees Retirement Fund, 138 S. Ct. 1061 (2018), the Supreme Court held that the Securities Litigation Uniform Standards Act of 1998 ("SLUSA") did not strip state courts of concurrent jurisdiction over class actions alleging violations of the Securities Act of 1933 ("1933 Act") where such lawsuits do not also assert claims under the Securities Exchange Act of 1934 (over which federal courts have exclusive jurisdiction). In the wake of the Cyan decision, the number of 1933 Act claims brought in state court has increased dramatically, with the most significant increase occurring in New York. In the first year after the Cyan decision, 20 cases pursuing 1933 Act claims were brought in New York state court.
