Fraud on the Global Market: U.S. Courts Don’t Buy It; Subject-Matter Jurisdiction in F-Cubed Securities Class Actions

Abstract:     
This Note will examine how U.S. courts decide whether to exercise subject-matter jurisdiction over the claims of foreign purchasers in an increasingly common form of securities class actions called the “F-cubed” (short for “Foreign-cubed”) action - that is, a class action brought against a foreign issuer on behalf of a class that includes foreign investors who transacted on a foreign exchange. The very recent decision of the Second Circuit in Morrison v. National Australia Bank Ltd. did not bring clarity to the puzzle. In fact, the Second Circuit’s decision in that case stands in contrast to prior decisions in F-cubed cases and therefore begs a fresh analysis of how courts approach the F-cubed problem.

Number of Pages in PDF File: 28

Keywords: F-cubed, foreign cubed, securities, subject matter jurisdiction, extraterritoriality, class action, Morrison v. National Australia Bank

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