So the U.S. Supreme Court held in Morrison that the investors who purchased their shares
of a non-U.S. company on a foreign exchange cannot pursue claims under the
Exchange Act, but securityholders who purchased American Depositary Receipts
(ADRs) in the U.S. can still seek damages under the Exchange...
The first Monday in October marks the opening of the new
Supreme Court Term each year. Last year, the High Court heard five cases which
are having a significant impact in securities litigation. Jones , discussed here ,
reaffirmed the traditional Second Circuit standard for bringing suits under
The Commission prevailed on a motion for summary judgment against the founder and chief investment officer of a registered investment company, Leila Jenkins. The complaint centered on allegations that about $1.2 billion of the $1.3 billion the fund claimed to have under management was fictitious. The...
Exchange Act Section 16(b) is typically applied as a
"blunt instrument," according to the courts. Crafted as the only provision to
specifically address insider trading at the time the Exchange Act was written
in 1934, the Section precludes what are called "short swing" profits...
The Supreme Court rejected the approaches of two Circuit
Courts to tolling the limitation period for bringing an Exchange Act Section
16(b) claim while failing to decide if that period can be tolled. The High
Court rejected the conclusion of the Ninth Circuit that the two year statute of
This is an update to our November 30, 2010 and April 26, 2011 blog posts relating to the SEC's Study on
Extraterritorial Private Rights of Action. The study was a result of the
Supreme Court's decision in Morrison
v. National Australia Bank , 130 S. Ct. 2869 (2010), which abandoned
The D.C. Circuit vacated another Commission determination last week. Again, the order was not based on the merits. Again, it was based on the failure of the agency to comply with procedural requirement.
Earlier this year the Circuit Court vacated the Commission's proxy access Rule because the...
The SEC's new cooperation tools have impacted a number of actions. In four cases, as discussed in Part I of this article, the Commission entered into agreements under which it either chose to prosecute or deferred prosecution with a view toward dismissal. In most instances where the agency has acknowledged...