Supreme Court considers whether US securities law applies to overseas dealingsBy AP
Monday, March 29, 2010
High court weighs fraud lawsuit vs. Aussie bank
WASHINGTON — The Supreme Court has indicated it could prohibit foreign investors from using U.S. securities law and American courts to sue a foreign bank for fraud.
The court heard argument Monday in a challenge from Australian investors who want to sue the Melbourne-based National Australia Bank for securities fraud in U.S. federal court. The investors say they should have access to American courts because the claim of fraud relies on the actions of a bank-owned mortgage servicing company in Florida.
But none of the justices appeared to accept the investors’ argument.
Justice Ruth Bader Ginsburg said, “Australian plaintiffs, Australian defendants, shares purchased in Australia. It has Australia written all over it.”
Tags: Australia, Australia And Oceania, Corporate Crime, Florida, Fraud And False Statements, Government Regulations, Industry Regulation, North America, Ownership Changes, United States, Washington