Inside The 2nd Circ. Analysis Of Absolute Activist

Law360, New York (June 5, 2012, 2:30 PM EDT) -- Securities lawyers have long been troubled by the potential extraterritorial scope of U.S. securities laws. The extraterritorial reach of a fraud claim under section 10(b) of the Securities Exchange Act of 1934 has traditionally depended on what level of activity touches upon U.S. soil and U.S. citizenry.

In Morrison v. National Australia Bank Ltd.[1], the U.S. Supreme Court held that the activity that matters is the purchase and sale of the securities, not the conduct that constituted the fraud. Applying the presumption against extraterritoriality, which presumes...
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