Matsushita Elec. Industrial Co. v. Epstein

After Matsushita (defendant) acquired an entertainment company, shareholders including Epstein (plaintiffs) filed two lawsuits: a federal securities-law suit in California, dismissed in Matsushita's favor and then appealed, and a state fiduciary-duty suit in Delaware, which settled for a fair value covering all claims including those in the federal suit. The Ninth Circuit held that the Delaware settlement's adjudication of state claims had no preclusive effect on the federal securities issues, reasoning federal courts had exclusive jurisdiction over those claims; the Supreme Court granted certiorari.