The Top Securities Decisions Of 2016: Midyear Report
By Carmen Germaine
July 8, 2016
The Supreme Court’s most significant securities decision of the term came in May, when the justices unanimously agreed that the Securities Exchange Act does not block shareholders from bringing certain securities claims in state court.
Justice Elena Kagan delivered the opinion for the court, upholding a Third Circuit ruling that shareholders in Merrill Lynch unit Escala Group Inc. can bring claims in a New Jersey court under the state’s securities and anti-racketeering laws.
Ron Colombo, a professor at Hofstra Law, says the case is a win for a plaintiffs bar that seems to face an increasingly defense-friendly high court.
“The result is a gift to the plaintiffs, not a humongous gift, but it basically allows plaintiffs more control over the forum they select,” Colombo said. “Forum selection is a very important subject. It can make a big difference in how a case is ultimately resolved.”
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