The Supreme Court let stand a lower ruling Monday that said the California Public Employees’ Retirement System must proceed with its securities fraud lawsuit on behalf of WorldCom bondholders in federal, rather than state, court.
At issue were two federal statutes, which disagreed on which court should hear the litigation after the telecom giant announced major accounting problems in 2002. The 2nd U.S. Circuit Court of Appeals ruled that the lawsuit belongs in federal court to the extent it is “related to” a bankruptcy case.
