Beyond the jurisdiction of US Courts?

Date: 2010-04-07

US Supreme Court to decide scope of federal securities laws in transnational litigation

On Monday, March 29 2010, the Supreme Court will hear the case of Morrison v National Australia Bank Ltd with important implications for non-US shareholders and international public companies.  US securities litigation firm Labaton Sucharow’s Senior Partner Thomas A. Dubbs will argue on behalf of a class of non-US investors seeking compensation in this action. 

This is the first transnational case (which in certain circumstances is referred to as ‘f-cubed’ litigation) addressing the extraterritorial impact of US securities laws that the high court has ever heard, and one of the most watched case of this Supreme Court term.  The decision may present significant implications for non-US claimants and non-US issuers. 

In Morrison v National Australia Bank Ltd, the alleged accounting fraud occurred at the Bank’s Florida-based subsidiary, which the plaintiffs argued gave US courts jurisdiction.  However, the US Court of Appeals for the Second Circuit in October 2008 found that the “heart of the fraud” issue actually took place at National Australia Bank headquarters in Melbourne, and that it had no impact on American capital markets.  The Second Circuit affirmed the dismissal of securities fraud claims by non-US shareholders who bought National Australia Bank share on non-US exchanges. 

Labaton Sucharow will carry out a series of briefings in the UK which will address the following topics:

• What the potential impact of the Supreme Court’s decision (expected by summer 2010) will mean for non-US investors currently involved in seeking financial and legal redress via the US system through class actions; and
• What the Court decision will mean for future classes of investors. 

The briefings will be held in Leeds, London and Edinburgh on 14, 15 and 20 April respectively.

For further information, or to book your place at one of the briefings, please contact Vanessa Charters on vanessa.charters@morrishsolicitors.com or 0759-5564764