Morrison, et al. v. National Australia Bank Ltd., et al.

Case Updates

The Second Circuit held that American securities laws did not apply in a securities fraud action filed by Australian shareholders against an Australian defendant for alleged misstatements made in Australia. The decision should reassure foreign investors skittish about investment in U.S. markets due to potential liability under American securities laws.

Subsequent to the ruling, NCLC participated as an amicus in the plaintiffs' petition for Supreme Court review of the case.

NCLC filed a brief urging the Second Circuit to dismiss a securities class action brought by foreign plaintiffs against a foreign company for conduct that occurred abroad. In this case the plaintiffs, Australian shareholders, filed a securities fraud action in federal court in New York under American law against an Australian defendant for alleged misstatements made in Australia. In its brief, NCLC explained that Supreme Court precedent foreclosed this extraterritorial application of the law and warned that permitting this action to proceed could harm foreign direct investment in the U.S. and the competitiveness of our capital markets.