Cleary Gottlieb Discusses the Morrison Decision, 10 Years On

Ten years ago, the U.S. Supreme Court issued its landmark decision in Morrison v. National Australia Bank Ltd., which limited the extraterritorial application of the federal securities laws in order to prevent the United States from becoming “the Shangri-La of class-action litigation for lawyers representing those allegedly cheated in foreign securities markets.”[1]  In Morrison, the Supreme Court threw out decades of lower court precedent that had applied Section 10(b) of the Securities Exchange Act[2] if the conduct at issue occurred in the United States or had effects felt within the United States, criticizing that test as “unpredictable,” … Read more