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Supreme Court Limits Foreign Investors' Access to U.S. Courts

In a long-awaited ruling, the U.S. Supreme Court on June 24, 2010 issued an opinion affirming dismissal of the Morrison v. National Australia Bank case. Among other things, the Court's opinion will limit securities claims by investors who bought their shares on foreign exchanges. This ruling...

O.K., F-Cubed Claims Are Out, But What About F-Squared Claims?

The U.S. Supreme Court's decision last month in the Morrison v. National Australia Bank case made it clear U.S. securities laws do not allow so-called "f-cubed" cases -- securities claims against foreign domiciled companies and brought by foreign-domiciled claimants who purchased their...

Morrison v. National Australia Bank Ltd: Supreme Court Closes the Border to Section 10(b) Plaintiffs

by Michele Rose, Christian Word, Jessica Phillips and Kamil Redmond The United States Supreme Court recently rejected years of federal jurisprudence on the extraterritorial application of §10(b) of the Securities Exchange Act. In Morrison v. National Australia Bank, No. 08-1191, the Court held...

Supreme Court Rejects Extraterritorial Application of Section 10(b) and 'Conduct and Effects' Test in Morrison v. National Australia Bank Ltd

by Michele Rose, Christian Word, Jessica Phillips and Kamil Redmond The United States Supreme Court recently rejected years of federal jurisprudence on the extraterritorial application of §10(b) of the Securities Exchange Act. In Morrison v. National Australia Bank, No. 08-1191, the Court held...

Morrison Precludes Claims Based on Non-U.S. Purchased Shares, Even if Company Shares "Listed" in U.S.

On September 14, 2010, in another ruling that the U.S. Supreme Court's decision in Morrison v. National Australia Bank ( read the opinion ) precludes claim by "f-squared" claimants - that is, U.S. residents who purchased shares of a Non-U.S. company on a foreign exchange - Southern District...

So Morrison Precludes Even Domestic ADR Purchasers' Securities Suits?

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...

3Q10 Securities Class Action Filings Remain Below Historical Averages

New securities class action lawsuit filings in the third quarter of 2010 remained below longer term historical averages, although consistent with filing levels in more recent quarters. There were 39 new securities class action lawsuits filed in the third quarter, bringing the 2010 YTD total number...

Swiss Re Subprime Securities Suit Dismissed Based on Morrison

Yet another securities class action lawsuit against a non-U.S. company has been dismissed based on the U.S. Supreme Court decision in Morrison v. National Bank of Australia . In a decision that specifically addresses many of the questions that have been discussed in the wake of Morrison, Southern District...

Under Morrison, Section 10(b) Does Not Apply to Swap Transactions in U.S Referencing Non-U.S. Securities

In the latest demonstration of just how far the U.S. Supreme Court's holding in Morrison v. National Australia Bank may restrict Section 10(b) claims involving foreign companies, on December 30, 2010, Southern District of New York Judge Harold Baer held that U.S.-based hedge funds could not pursue...

Morrison Extended Even Further in RBS Subprime Securities Suit Dismissal

In a January 11, 2011 ruling that for the first time extends the U.S. Supreme Court's decision in Morrison v. National Australia Bank to claims under the Securities Act of 1933, and that for the first time rejects the "U.S. listing" theory by which plaintiffs in many cases had hoped...

Plaintiffs' Lawyers Pursue Non-U.S. Securities Litigation Alternatives After Morrison

One of the questions posed in the wake of the U.S. Supreme Court's landmark decision in Morrison v. National Australia Bank is whether the Court's holding might encourage securities claimants foreclosed by Morrison from U.S. court to attempt to pursue their claims in their home countries...

Plaintiffs' Lawyers Pursue Non-U.S. Securities Litigation Alternatives After Morrison

One of the questions posed in the wake of the U.S. Supreme Court's landmark decision in Morrison v. National Australia Bank is whether the Court's holding might encourage securities claimants foreclosed by Morrison from U.S. court to attempt to pursue their claims in their home countries or in...

Vivendi Court Narrows Securities Suit Class, Applying Morrison

In the long-awaited rulings on the post-trial motions in the Vivendi securities case , Judge Richard Holwell has entered a February 22, 2011 order materially narrowing the plaintiff class based on the U.S. Supreme Court's holding in Morrison v. National Australia Bank . A copy of Judge Holwell's...

Vivendi Court Narrows Securities Suit Class, Applying Morrison

In the long-awaited rulings on the post-trial motions in the Vivendi securities case , Judge Richard Holwell has entered a February 22, 2011 order materially narrowing the plaintiff class based on the U.S. Supreme Court's holding in Morrison v. National Australia Bank . A copy of Judge Holwell's...

N.D. Cal. Applies Morrison to Dismiss Non-U.S. Purchasers from Infineon Securities Suit

It has been a long road -- one that included among other things, an amicus brief filed at the U.S. Supreme Court in connection with Morrison v. National Australia Bank - but the defendants in the Infineon Technologies securities suit have managed to have the court dismiss the claims of company shareholders...

California Federal Court Cites Morrison In Dismissing Non-U.S. Purchasers From Infineon Securities Lawsuit

It has been a long road -- one that included among other things, an amicus brief filed at the U.S. Supreme Court in connection with Morrison v. National Australia Bank - but the defendants in the Infineon Technologies securities suit have managed to have the court dismiss the claims of company shareholders...

One Year Later: The Reach of U.S. Securities Laws After Morrison

In the year since the Supreme Court issued its decision in Morrison regarding "foreign cubed" securities claims, where the Court held that federal securities statutes do not apply, lower federal courts have applied Morrison inconsistently. James M. Wilson Jr., partner at Chitwood Harley Harnes...

Applying Morrison, Court Rejects Toyota Shareholders' Japanese Law Securities Claims

The U.S. Supreme Court's June 2010 decision in Morrison v. National Australia Bank looked like the end of securities claims in U.S. courts on behalf so-called "f-cubed" claimants - that is, foreign shareholders of foreign-domiciled companies who bought their shares on foreign exchanges...

Central District Of California Rejects Toyota Shareholders' Japanese Law Securities Claims

The U.S. Supreme Court's June 2010 decision in Morrison v. National Australia Bank looked like the end of securities claims in U.S. courts on behalf so-called "f-cubed" claimants - that is, foreign shareholders of foreign-domiciled companies who bought their shares on foreign exchanges...

The Continuing Impact of Morrison

Since the Supreme Court rewrote the rules regarding the extraterritorial reach of Exchange Act Section 10(b) in Morrison v. National Australia Bank Ltd. , 130 S. Ct. 2869, the circuit and district courts have struggled with its application. In Morrison the High Court created a bright line test, holding...

The Second Circuit Takes a Whack at Morrison's Second Prong

In its June 2010 decision in the Morrison v. National Australia Bank , the U.S. Supreme Court enunciated a "transactions" test to determine the applicability of the U.S. securities laws. The Court said that the U.S. securities laws apply only to "transactions in securities listed on...

Second Circuit Interprets Transaction Prong of Morrison Test

Recently, in Absolute Activist Value Master Fund Limited v. Ficeto , Docket No. 11-0221-cv, 2012 U.S. App. LEXIS 4258 (2d Cir. Mar. 1, 2012) [ an enhanced version of this opinion is available to lexis.com subscribers / unenhanced version available from lexisONE Free Case Law ], the Second Circuit interpreted...

A Way Around Morrison?: Dismissal Denied in Short-Sellers' State Court Suit Against Porsche

The U.S. Supreme Court's decision in Morrison v. National Australia Bank presents significant obstacles for claimants who want to pursue securities claims against non-U.S. companies in the U.S courts, as the short sellers who tried to sue Porsche in the Southern District of New York found out-their...