Mealey's (May 16, 2016, 2:11 PM EDT) -- WASHINGTON, D.C. — The jurisdictional test established by Section 27 of the Securities Exchange Act of 1934 does not preempt certain federal securities law claims from being brought in state court, the U.S. Supreme Court unanimously ruled on May 16 in affirming a federal circuit court’s ruling in a fraudulent naked short-selling scheme (Merrill Lynch, Pierce, Fenner & Smith Inc., et al. v. Greg Manning, et al., No. 14-1132, U.S. Sup.).

(Opinion available. Document #57-160620-001Z.)

Writing for the Supreme Court, Justice Elena Kagan held that Section...