Unfortunately, almost a century later, that “happenstance” is contributing to a shrinking IPO market. Given the absence of any apparent original purpose for granting concurrent jurisdiction over adjudication of IPO-related claims and Congress’ more recent intent to prevent plaintiffs from evading the protections of the PSLRA by filing suit in state courts, it is time for Congress to finally and definitively close the remaining state-court loophole for adjudication of federal securities claims. As the Supreme Court suggested in Cyan, “If Congress … want[s] to deprive state courts of jurisdiction over [Securities] Act class actions, it ha[s] an easy way to do so: just insert … an exclusive federal jurisdiction provision (like [that included in the Securities Exchange Act]) for such suits.” 138 S. Ct. at 1070. Eighty-five years after that very amendment was first proposed, it is time for Congress to do exactly that.
‘Enforcement 40’ for 2020
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