Can U.K. and European investors gain legal redress through U.S. courts for corporate malpractice committed by a non-U.S. firm in America? And might charges brought by the U.S. Securities and Exchange Commission against Goldman Sachs unleash a cascade of such class actions by non-U.S. investors? The case with potential watershed qualities that is being closely followed in international legal circles isn’t in fact Goldman Sachs. It’s an appeal that was heard in the U.S. Supreme Court last month. Judgment is due soon. It has important implications for non-U.S. shareholders and international public companies. The case, Morrison v. National Australia Bank, involved transnational securities fraud and the extraterritorial application of U.S. securities laws.
Supreme Court ruling could spark deluge of non-U.S. class actions