'Foreign-Cubed' Ruling May Be Escape Hatch For Some

Law360, New York (June 24, 2010, 11:36 PM EDT) -- With the U.S. Supreme Court effectively slamming the door on so-called “foreign-cubed” securities cases Thursday, plaintiffs' attorneys will be forced to rethink their strategy in many securities class actions involving foreign defendants, experts say.

On Thursday, Justice Antonin Scalia delivered the high court's opinion in Morrison v. National Australia Bank Ltd. et al., creating a new, straightforward “transactional” test for courts to use to determine the reach of Section 10(b) of the Securities Exchange Act of 1934, which prohibits fraud in connection with the purchase or...
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