Supreme Court reins in extraterritoriality

Author: | Published: 20 Jul 2010

Foreign-cubed securities class actions can no longer be filed in the US due to a decision in Morrison v National Australia Bank. On June 24, the Supreme Court found that foreign investors buying securities of a foreign company on a foreign exchange cannot bring fraud actions in the US.

"This is a clear cut victory for the US capital markets, predictability and foreign issuers. It is much more of a bright line approach based on what the statute says," said Jordan Eth, co-chair of Morrison & Foerster's securities litigation, enforcement and white-collar defence group. "This...