In Morrison v. National Australia Bank, the Supreme Court addressed the extraterritorial reach of Section 10(b) of the Securities Exchange Act. Specifically, the Court analyzed whether foreign plaintiffs suing foreign defendants in connection with securities traded on foreign exchanges - so called "f-cubed" litigation - could bring a claim under Section 10(b). The Supreme Court reaffirmed the presumption that "when a statute gives no clear indication of extraterritorial application, it has none." Writing for the majority, Justice Scalia held that Section 10(b) applies to fraud "only in connection with the purchase or sale of a security listed on an American stock exchange and the purchase or sale of any other security in the United States."
In the wake of this decision, we all wondered whether Morrison would be limited to its facts. It didn't take long for us to have our answer: Morrison clearly has been extended far beyond its narrow, "f-cubed" factual context.