Staying Fit
The Supreme Court is taking up several cases this term that could affect people age 50 and older. The issues the court will examine that are important to older people range from voting rights to investor fraud.
“The Supreme Court plays an increasingly vital role in shaping the laws and policies that affect older adults,” according to AARP Foundation Senior Vice President for Litigation William Alvarado Rivera. “As we live longer, healthier lives, it is critical that we advocate on behalf of AARP members and others in cases like these that can adversely affect our ability to work, save, vote and otherwise choose how we live as we age."
Here is a look at key cases, issues and what’s at stake, according to AARP Foundation’s annual U.S. Supreme Court Preview.
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Protecting older investors from fraud
The Cyan, Inc. v. Beaver County Employees Retirement Fund case could make it harder to guard the financial security of older people and other investors. The question the Supreme Court is considering is whether state courts have jurisdiction to hear class action fraud claims that shareholders file using the federal Securities Act.
Shareholders of networking-products maker Cyan — including two pension funds that invested in the firm ahead of its May 2013 initial public offering (IPO) — sued in California state court after the stock performed poorly. The plaintiffs alleged that the company’s IPO registration statement was misleading. (The company’s shares went public at $11, but were worth far less when Cyan was acquired by telecom-equipment maker Ciena for $4.77 a share in 2015.) Cyan contends state courts lack jurisdiction over such suits.
Retirement and pension fund managers rely on the claims made in the company’s prospectus to make investment decisions. Having access to both state and federal courts is essential to fully protect investors, according to attorney Julie Nepveu.
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