Short-selling hedge funds that claim Porsche concealed its bid for a takeover of Volkswagen have no right to sue in New York for violation of U.S. securities laws, a federal judge has ruled.
In the latest application of the U.S. Supreme Court’s 2010 decision restricting extraterritorial application of the securities laws in Morrison v. National Australia Bank, 130 S.Ct. 2869, Southern District Judge Harold Baer said the hedge funds cannot pursue $2.5 billion in damages from Porsche for fraud under §10(b) of the Securities Exchange Act of 1934 because the shares were not traded in the United States.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
