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

28 Pages Posted: 2 Dec 2009 Last revised: 14 Jan 2010

Julie B. Rubenstein

Cornell University - Law School

Date Written: November 30, 2009

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.

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

Suggested Citation

Rubenstein, Julie B., Fraud on the Global Market: U.S. Courts Don’t Buy It; Subject-Matter Jurisdiction in F-Cubed Securities Class Actions (November 30, 2009). Cornell Law Review, Vol. 95, No. 3, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1516082

Julie B. Rubenstein (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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