Morrison v. National Australia Bank

Definition:

Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869 (2010). A recent US Supreme Court case concerning the extraterritorial effect of US securities legislation. In this landmark decision, the Court ruled that Section 10(b) of the Exchange Act does not provide a cause of action to foreign plaintiffs suing foreign and US defendants for misconduct in connection with securities traded on foreign exchanges.

The Supreme Court’s decision precludes so-called “f-cubed” claims (i.e., a lawsuit by foreign plaintiff(s), against a foreign defendant, concerning securities traded on a foreign exchange). The US Supreme Court said that the relevant portions of the US securities laws related solely to “transactions in securities listed on domestic exchanges” and to claims relating to “domestic transactions in other securities.”

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