2nd Circ. Curbs Criminal Actions Over Foreign Securities

Law360, New York (August 30, 2013, 1:06 PM EDT) -- The Second Circuit on Friday sharply curtailed the use of U.S. criminal laws to punish alleged fraud in foreign securities deals, delivering a blow to prosecutors and offering fresh guidance on the U.S. Supreme Court's landmark 2010 ruling in Morrison.

A three-judge panel ruled that criminal liability under Section 10(b) of the Securities Exchange Act of 1934 does not extend to conduct in connection with the extraterritorial purchase or sale of securities. As a result, defendants may be convicted of securities fraud under that key law...
To view the full article, register now.