Tuesday, July 12, 2011
In the Toyota shareholder litigation, the plaintiffs have had trouble maintaining a sizable lawsuit in federal court. Last year, the Supreme Court ruled that plaintiffs do not have standing to bring federal securities law claims for shares that were bought on a foreign exchange. (Morrison v. National Australia Bank). The Toyota plaintiffs responded to this development by amending their complaint to add claims under Japanese law. The district judge hearing the case, however, declined to exercise supplemental jurisdiction to hear these claims because they would "substantially predominate" over the remaining federal claims in the case.
The National Law Journal has further coverage here.