US Supreme Court backs shareholder lawsuits over IPOs The U.S. Supreme Court backed one avenue for lawsuits over initial public offerings, letting shareholders use a federal securities law to press claims in state court. The justices unanimously said Tuesday that a 1998 federal law didn't strip state courts of the power to hear claims pressed under the 1933 Securities Act. Companies argued unsuccessfully that those lawsuits need to proceed in federal courts, where corporate defendants tend to fare better. (Pensions & Investments)