F-Cubed Conflict

The bank's common stock traded on the Australian Securities Exchange, the London Stock Exchange, and the Tokyo and New Zealand exchanges. The shares did not trade on U.S. exchanges, but NAB's American Depository Receipts (ADRs, or instruments issued by U.S. depository banks that give holders the right to buy the foreign stock) did trade on the New York Stock Exchange.

NAB had acquired HomeSide, America's sixth biggest mortgage service company with the right to service mortgages totaling $18 billion in 1998.

"While HomeSide's rigging of the numbers may have contributed to the misinformation, a number of significant events needed to occur before this misinformation caused losses to investors," the court stated.

The "striking absence" of allegations that the fraud affected U.S. markets or residents also influenced the court.


Julius Melnitzer

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