Subscribe to the Finance Headline RSS feed | Subscribe to the Finance Headline feed via EmailANALYSIS: Pushing the Limits of U.S. Securities Laws: ‘Foreign-Cubed’ Cases
March 8, 2010 in Securities Regulation & Law Report · Leave a Comment
The Supreme Court is poised this Term to address one of the hot issues in securities class-action litigation: the extent to which the U.S. securities laws apply to transnational securities transactions, and especially to so-called “F-cubed” cases – lawsuits brought in U.S. courts under the U.S. securities laws by foreign plaintiffs who are suing foreign issuers based on the foreign plaintiffs’ purchases of the foreign securities on foreign exchanges.
The Supreme Court’s decision should clarify the securities statutes’ extraterritorial reach. But, with any luck, the Court also will clear up the pervasive doctrinal confusion in the lower courts about the jurisprudential nature of the question. Although courts have almost uniformly referred to the issue as one of “subject-matter jurisdiction,” the extraterritorial reach of a federal statute actually should be considered as…
