The Securities and Exchange Commission is seeking public comment to help it carry out its Dodd-Frank Act mandated study of whether to allow private plaintiffs the right to bring actions involving transnational securities frauds.
In a June decision in Morrison v. National Australia Bank, the Supreme Court significantly limited the extraterritorial scope of Section 10(b) of the Exchange Act, barring so-called “f-cubed” securities fraud actions, lawsuits brought by foreign investors in U.S. courts based on fraud allegations concerning securities issued by foreign companies and traded on foreign exchanges.
