Foreign issuers can breathe easier these days, thanks to a recent federal appeals court ruling that threw cold water onto the legal oddity of so-called “F-cubed” lawsuits in U.S. courts.

Such lawsuits—disputes between foreign plaintiffs and foreign issuers over a foreign securities transaction that still somehow end up in U.S. courts—have been a growing concern for overseas companies. Plaintiffs try to drag them into U.S. courts since the American legal system is a long and expensive process, making settlement a more attractive choice.

The 2nd Circuit Court of Appeals, however, finally gave a clear opinion of such cases in its Oct. ...