In a recent case, the Second Circuit court decided that a Securities Exchange Act Section 10(b) action could be brought because the transaction at issue had sufficient connections to the United States to constitute a “domestic transaction.” The action involved Bahamian and American plaintiffs bringing an action against a Bahamian company. The company’s securities
Class Actions
Application of the Morrison Case to Unsponsored ADRs
The Ninth Circuit recently decided a case, Automotive Industries Pension Trust Fund v. Toshiba Corp., in which the Circuit court considered the application of the Supreme Court’s territoriality standard in the Morrison v. National Australia Bank Ltd. case. The court considered whether purchasers of Toshiba unsponsored ADRs on the over-the-counter market were precluded from…
Coalition of State Treasurers Oppose Mandatory Arbitration
Although Securities and Exchange Commission Chair Clayton has made clear that the Commission does not intend to focus on addressing mandatory arbitration provisions in the near term, the controversy regarding action in this regard remains active. A coalition of bipartisan state treasurers (California, Illinois, Iowa, Oregon, Pennsylvania and Rhode Island) delivered a letter to the…
Pending Class Action Does Not Toll Statute of Limitations
The U.S. Supreme Court reached a decision in China Agritech, Inc. v. Resh holding that the equitable tolling rule does not apply to subsequently filed class action claims. In a 1974 decision, American Pipe & Construction Company v. Utah, the Supreme Court had held that the timely filing of a class action tolls the…