June 25, 2019

High Court also rejects taking on 2 shareholder suits.

The Supreme Court is asking for the opinion of the U.S. solicitor general on whether it should consider a petition from the Roman Catholic Archdiocese of San Juan, Puerto Rico, to decide if courts can override a religious organization's legal structure and force affiliates to face joint and several pension liability as a single entity.

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In other orders issued Monday, the Supreme Court declined to take two cases brought by pension fund shareholders.

Toshiba Corp. vs. Automotive Industries Pension Trust Fund involved purchasers of Toshiba Corp. American depository receipts that were not sponsored by the company but issued by financial institutions and can trade on exchanges

The company sought to revisit a decision by the 9th U.S. Circuit Court of Appeals in San Francisco allowing plaintiffs led by the $1.2 billion Automotive Industries Pension Trust Fund and the $2.9 billion New England Teamsters & Trucking Industry Pension Fund to pursue the case against a foreign company. A 2010 Supreme Court decision limits lawsuits against companies involving foreign-bought securities in U.S. courts.

"On its face this is good news for investors but, as always, it is challenging to interpret the full significance of a cert denial," said Daniel S. Sommers, partner with the Cohen Milstein Sellers & Toll PLLC law firm in Washington, in an email.

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