Articles

Doug Greene, Jessie Gabriel, Marco Molina, Brian Song Author Comprehensive Analysis of Securities Litigation Post-"Cyan" Ruling

Articles / April 24, 2018

Partners Doug Greene, Jessie Gabriel and Brian Song and Associate Marco Molina authored an article published by The D&O Diary on April 23, 2018. The article, “The State of Securities Litigation after Cyan,” is a comprehensive examination of the recent U.S. Supreme Court ruling in Cyan, Inc. v. Beaver County Employees Retirement Fund,” holding that state courts retain concurrent jurisdiction for liability actions under the Securities Act of 1933.

The authors review the case history and its implications and warn:

Cyan portends a paradigm shift in how defense lawyers defend securities class actions and D&O insurers cover and monitor them. Cyan permits a class action asserting Section 11 or 12(a)(2) claims under the 1933 Act to proceed in state court while a related Section 10(b) class action is proceeding under the Securities Exchange Act of 1934 Act (“1934 Act”) in federal court. This bifurcation is highly dysfunctional.

Read the article.