Liability for Transnational Securities Fraud, Quo Vadis?

Chapter for Rethinking Global Finance and Its Regulation (Douglas Arner, Emilios Avgouleas, Ross Buckley, eds., CUP, Forthcoming)

European Corporate Governance Institute (ECGI) - Law Working Paper No. 272/2014

45 Pages Posted: 2 Nov 2014 Last revised: 3 Nov 2014

See all articles by Amir N. Licht

Amir N. Licht

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law; European Corporate Governance Institute (ECGI)

Date Written: October 1, 2014

Abstract

This Chapter evaluates the state of affairs with regard to liability for transnational securities fraud in the post-Morrison era, to find that it is in a state of flux. Indeed, the U.S. Supreme Court’s decision in Morrison has relatively little to do with this situation beyond helping to expose the severe limitations from which civil liability for securities fraud already suffers. The U.S. liability regime as it is currently designed may be ineffectual in deterring securities fraud and in supporting good corporate governance through legal bonding. In contrast, public enforcement emerges as a potent institution in this regard in various countries around the world, although its effectiveness hinges on informal institutional prerequisites.

Keywords: securities fraud, civil liability, class actions, bonding, corporate governance

JEL Classification: G15, G18, G38

Suggested Citation

Licht, Amir N., Liability for Transnational Securities Fraud, Quo Vadis? (October 1, 2014). Chapter for Rethinking Global Finance and Its Regulation (Douglas Arner, Emilios Avgouleas, Ross Buckley, eds., CUP, Forthcoming), European Corporate Governance Institute (ECGI) - Law Working Paper No. 272/2014, Available at SSRN: https://ssrn.com/abstract=2517778 or http://dx.doi.org/10.2139/ssrn.2517778

Amir N. Licht (Contact Author)

Interdisciplinary Center (IDC) Herzliyah - Radzyner School of Law ( email )

P.O. Box 167
Herzliya, 46150
Israel
972-9-952-7332 (Phone)
952-9-9513323 (Fax)

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
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Belgium
952-9-9513323 (Fax)

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