(1) A column on Law.com provides an overview of the recent U.S. Supreme Court cases related to securities litigation.
Quote of note: “While Dura and Tellabs are significant in their own right, their impact may pale in comparison to the Supreme Court’s resolution, to be made in 2008, of Stoneridge Investment Partners LLC v. Scientific-Atlanta, Inc., which squarely puts the theory of “scheme liability” to the test.”
(2) Professor Hannah L. Buxbaum has posted a forthcoming article on the jurisdictional issues raised by “foreign cubed” cases (defined as an action brought against a foreign issuer, on behalf of a class that includes not only investors who purchased the securities in question on a U.S. securities exchange, but also foreign investors who purchased the securities on a foreign securities exchange). The article – entitled “Multinational Class Actions Under Federal Securities Law: Toward a “Fraud on the Global Market” Theory?” – can be downloaded here.
Quote of note: “Multinational class actions invoke particularly strongly the concerns courts and commentators share regarding the over-expansive application of U.S. regulatory law in the global arena. (And, as I have argued, they are likely in the near future to attract the unfavorable notice of foreign governments as well.) Moreover, these claims illustrate particularly clearly the weaknesses of traditional jurisdictional rules.”
The 10b-5 Daily 