The Supreme Court Considers the Application of the Antifraud Provisions of the United States Securities Laws in “Foreign-Cubed” Cases
The Supreme Court heard oral arguments yesterday in Morrison v. National Australia Bank, No. 08-1191, a “foreign-cubed” case in which the Court is expected to address for the first time the extraterritorial application of the antifraud provisions of the United States securities laws. Federal courts have recently wrestled with the application of Section 10(b) of the Securities Exchange Act of 1934 in these “foreign-cubed” cases where the investors are foreign, the issuers are foreign, and the securities are listed on foreign exchanges. The Court is poised to provide much-needed guidance on the appropriate standard for determining the application of the antifraud provisions of the United States securities laws in such cases.