Sullivan & Cromwell discusses Second Circuit’s Application of Morrison v. National Australia Bank

SUMMARY

On August 15, 2014, in a case of first impression involving cross-border securities-based swap transactions, the Second Circuit held that the presumption against the extraterritorial application of Section 10(b), announced by the U.S. Supreme Court in Morrison v. National Australia Bank, 561 U.S. 247 (2010), applies even to claims involving supposedly “domestic” securities-based swap transactions if those claims are “so predominantly foreign as to be impermissibly extraterritorial.” In this case, where the claims against a non-U.S. company were based on statements made abroad and were based on swap transactions that referenced securities trading “only on foreign exchanges,” the … Read more

Sullivan & Cromwell discusses Forum Non Conveniens Doctrine in Cases Having Peripheral Connection to New York Banking System

In an opinion issued on April 8, 2014,[1] the New York Court of Appeals unanimously dismissed on forum non conveniens grounds a case arising from a foreign exchange transaction between a bank in the United Arab Emirates and a general partnership in Saudi Arabia, where the only nexus between the transaction and the State of New York was the “use of New York banks to facilitate dollar transfers.” In reversing the Appellate Division, First Department, the Court emphasized that, although New York has a compelling interest in maintaining the integrity of its banks, that interest “is not significantly threatened” merely … Read more