BackArticles and Speeches

“Attorneys React to High Court’s Merrill Lynch Ruling,” Law360

May 17, 2016
Cory E. Manning

In an article published on May 16, 2016, Columbia partner Cory E. Manning provides insight on the significance of the U.S. Supreme Court’s recent decision in Merrill Lynch v. Manning, which held that federal securities laws don't preempt some claims from being brought in state court. “The Manning decision, no relation, holds that Section 27 of the Exchange Act does not pre-empt state-court actions that seek to hold entities liable for breaching duties created by the Exchange Act and the regulations promulgated under the same,” says Mr. Manning. He explains that the Supreme Court decided (unanimously) that Section 27’s language is best interpreted to capture suits brought under the Exchange Act and the “rare suit” in which a state-law claim rises and falls on the plaintiff’s ability to prove a federal duty, which is consistent with 28 U.S.C. 1331’s provision for federal jurisdiction over all civil actions “arising under” federal law. For the full article, Law360 subscribers may click here.