Defining 'Domestic Transactions' Under Securities Law
April 20, 2012, 1:28 PM EDT
Law360, New York (April 20, 2012, 1:28 PM EDT) -- On March 1, in Absolute Activist Value Master Fund Ltd. et al. v. Ficeto et al., 11-cv-0221 (2d Cir. Mar. 1, 2012), the Court of Appeals for the Second Circuit affirmed the dismissal of a $200 million fraud case brought by nine Cayman Islands hedge funds that claimed to be the victims of a classic “pump-and-dump” scheme involving penny stocks in U.S. companies.
The appeals court ruled, however, that the hedge funds should have an opportunity to file an amended complaint, alleging violations of Section 10(b)...
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