The proliferation of private securities class action lawsuits remains a threat to companies whose securities are listed or traded in the United States. Securities class actions impose an extremely high cost on companies: Over the last decade, there have been more than 1,850 securities class action filings, resulting in nearly $60 billion in total settlements. These notoriously lawyer-driven filings place a significant burden on the federal bench and threaten to impede the competitiveness of the U.S. capital markets and economy.
The threat of being subject to securities class actions is among the chief deterrents to listing on an American exchange, especially in the wake of the Supreme Court’s opinion in Morrison v. National Australia Bank, 130 S. Ct. 2869 (2010). Morrison restricted the extraterritorial application of the anti-fraud provisions of the Securities and Exchange Act of 1934 (Exchange Act) primarily to securities listed on a domestic exchange, thereby providing a significant inducement to list shares outside 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This content has been archived.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]
