Cyan, Inc. v Beaver County Employees Retirement Fund

Cyan sought review of the California Court of Appeal decision that state courts retain exclusive jurisdiction over class action claims brought under the 1933 Securities Act. Resolving a split of authority, the Court unanimously affirmed. It held the 1933 Act assigned exclusive jurisdiction to state courts, the amendments to the Act passed in 1998 barred state law class action suits in state courts, but did nothing about eh preexisting exclusive jurisdiction over federal actions under the 1933 Act, the 1998 statute was passed to prevent lawyers form getting around congressional intent that all class actions under a 1934 securities act be brought in federal court and whatever other purpose the limitation on state court jurisdiction over state law claims it cannot overcome the plain language of the 1933 Act as amended. It rejected the federal government’s argument that removal to federal court should be allowed under the 1998 amendments as the removal provision is limited to state law claims, the removal arguments has already been rejected in Court precedent and the government’s proposed construction fails as matter of grammar.