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Cyan, Inc., et al. v. Beaver County Employees Retirement Fund, et al.

Paid petition · Court of Appeal of California, First Appellate District, No. A146891 · judgment December 10, 2015

Decided · March 20, 2018
At-filing estimate: 2% cert probability
The Solicitor General's brief was filed May 23, 2017

Before the decision, well below the 4.1% base rate, with no standout signals pointing toward a grant.

Question presented

To curb abusive class-action litigation concerning nationally traded securities, the Private Securities Litigation Reform Act of 1995 ("Reform Act") amended federal securities laws to impose new requirements, including fee limitations, selection criteria for lead plaintiffs, and an automatic stay of discovery pending any motion to dismiss. To prevent plaintiffs from filing class actions in state court and thereby sidestepping the Reform Act, the Securities Litigation Uniform. Standards Act of 1998 ("SLUSA") inter alia amended the Securities Act of 1933 (" '33 Act") to provide that concurrent state-court subject matter jurisdiction over '33 Act claims will continue "except as provided in [Section 16 of the '33 Act] with respect to covered class actions." Section 16, as amended by SLUSA, defines "covered class action" as any damages action on behalf of more than 50 people. This case is undisputedly a "covered class action." Section 16, as amended by SLUSA, also precludes covered class actions alleging state-law securities claims and permits precluded actions to be removed to and dismissed in federal court. No state-law claims were alleged in this case. The question presented - which has split federal district courts in removal cases and thus sidelined federal appeals courts - is: Whether state courts lack subject matter jurisdiction over covered class actions that allege only '33 Act claims.

Counsel of record

For petitioner
Boris Feldman
Freshfields Bruckhaus Deringer US LLP

For respondent
Thomas C. Goldstein

Case

Conference history
Distributed for 3 conferences (4 distributions)

Amicus briefs
3 cert-stage · 13 merits
(8 supporting pet./neither, 5 respondent)

Orders
Order list, November 6, 2017
Order list, January 8, 2018

Argument & decision

Argued November 28, 2017 — Neal K. Katyal · Allon Kedem · Thomas C. Goldstein. Listen and read along · the Court’s audio

Decided March 20, 2018. Opinion by Kagan.

Proceedings

  1. Aug 29 2018
    The record from the Court of Appeal of California First Appellate has been returned.
  2. Apr 23 2018
    JUDGMENT ISSUED.
  3. Apr 23 2018
    MANDATE ISSUED.
  4. Mar 20 2018
    Adjudged to be AFFIRMED. Kagan, J., delivered the opinion for a unanimous Court.
  5. Jan 08 2018
    Motion of petitioners to strike the supplemental brief of respondents is GRANTED.
  6. Nov 28 2017
    Argued. For petitioners: Neal K. Katyal, Washington, D. C. For United States, as amicus curiae, in support of affirmance: Allon Kedem, Assistant to the Solicitor General, Department of Justice, Washington, D. C. For respondents: Thomas C. Goldstein, Bethesda, Md.
  7. Nov 27 2017
    Motion of petitioners to strike the supplemental brief of respondents filed.
  8. Nov 27 2017
    Supplemental Brief of Cyan, Inc., et al. not accepted for filing. (January 08, 2018)
  9. Nov 22 2017
    Supplemental brief of respondents Beaver County Employees Retirement Fund, et al. filed.(Distributed)
  10. Nov 13 2017
    Reply of petitioners Cyan, Inc., et al. filed. (Distributed)
  11. Nov 09 2017
    Record received from the Court of Appeal of California First Appellate District Division. (1 envelope), also part of the record is electronic.
  12. Nov 06 2017
    Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument GRANTED. IN PART, and the time is to be divided as follows: 30 minutes for petitioners, 25 minutes for respondents, and 10 minutes for the Solicitor General.
  13. Oct 20 2017
    Brief amici curiae of Institutional Investors filed. (Distributed)
  14. Oct 20 2017
    Brief amici curiae of Federal Jurisdiction and Securities Law Scholars filed. (Distributed)
  15. Oct 20 2017
    Brief amicus curiae of Public Citizen, Inc. filed. (Distributed)
  16. Oct 20 2017
    Brief amicus curiae of Los Angeles County Employees Retirement Association filed. (Distributed)
  17. Oct 20 2017
    Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument filed.
  18. Oct 19 2017
    CIRCULATED
  19. Oct 19 2017
    Brief amicus curiae of United States filed. (Distributed)
  20. Oct 18 2017
    Record requested from the Court of Appeal of California First Appellate District.
  21. Oct 18 2017
    Record received from the Superior Court of California County of San Francisco. (1Box).
  22. Oct 13 2017
    Brief of respondents Beaver County Employees Retirement Fund, et al. filed.
  23. Oct 06 2017
    SET FOR ARGUMENT ON Tuesday, November 28, 2017.
  24. Sep 05 2017
    Brief amicus curiae of Washington Legal Foundation filed.
  25. Sep 05 2017
    Brief amicus curiae of New York Stock Exchange LLC filed.
  26. Sep 05 2017
    Brief amici curiae of Securities Industry and Financial Markets Association, et al. filed.
  27. Sep 05 2017
    Brief amici curiae of Alibaba Group Holding Limited, et al. filed.
  28. Sep 05 2017
    Brief amici curiae of Business Roundtable, et al. filed.
  29. Sep 05 2017
    Brief amici curiae of Former SEC Commissioners filed.
  30. Sep 05 2017
    Brief amici curiae of Law Professors filed.
  31. Aug 31 2017
    Brief amicus curiae of DRI - The Voice of the Defense Bar filed.
  32. Aug 28 2017
    Brief of petitioners Cyan, Inc., et al. filed.
  33. Aug 28 2017
    Joint appendix filed. (Statement of costs filed)
  34. Aug 11 2017
    Blanket Consent filed by Petitioners Cyan, Inc., et al.
  35. Aug 03 2017
    The time to file the joint appendix and petitioners' brief on the merits is extended to and including August 28, 2017.
  36. Aug 03 2017
    The time to file respondents' brief on the merits is extended to and including October 13, 2017.
  37. Jul 26 2017
    Blanket Consent filed by Respondents Beaver County Employees Retirement Fund, et al.
  38. Jun 27 2017
    Petition GRANTED.
  39. Jun 26 2017
    DISTRIBUTED for Conference of June 26, 2017.
  40. Jun 06 2017
    DISTRIBUTED for Conference of June 22, 2017.
  41. Jun 06 2017
    Supplemental brief of respondents Beaver County Employees Retirement Fund, et al. filed. (Distributed)
  42. Jun 05 2017
    Supplemental brief of petitioners Cyan, Inc., et al. filed.
  43. May 23 2017
    Brief amicus curiae of United States filed.
  44. Oct 03 2016
    The Acting Solicitor General is invited to file a brief in this case expressing the views of the United States.
  45. Sep 08 2016
    Reply of petitioners Cyan, Inc., et al. filed. (Distributed)
  46. Sep 07 2016
    DISTRIBUTED for Conference of September 26, 2016.
  47. Aug 24 2016
    Brief of respondents Beaver County Employees Retirement Fund, et al. in opposition filed.
  48. Jul 20 2016
    Order extending time to file response to petition to and including August 24, 2016.
  49. Jul 01 2016
    Response Requested. (Due August 1, 2016)
  50. Jun 29 2016
    DISTRIBUTED for Conference of September 26, 2016.
  51. Jun 27 2016
    Brief amici curiae of Securities Industry and Financial Markets Association, et al. filed. (Distributed)
  52. Jun 27 2016
    Brief amici curiae of Law Professors, Elizabeth Cosenza, et al. filed. (Distributed)
  53. Jun 17 2016
    Waiver of right of respondents Beaver County Employees Retirement Fund, et al. to respond filed.
  54. May 24 2016
    Petition for a writ of certiorari filed. (Response due June 27, 2016)