U.S. Supreme Court ruling closely follows arguments made by university professors who wrote brief in securities case
June 24, 2010
The U.S. Supreme Court ruled today that foreign investors cannot sue foreign firms in U.S. courts for securities fraud involving securities purchased outside the United States (so called "f-cubed" securities litigation). The ruling closely follows the arguments made in an amicus brief submitted by professors from 18 law schools across the United States including University of Minnesota Law School professors Richard Painter, John Matheson and Edward Adams.
Painter was the principal author of the brief and Douglas Dunham of Skadden Arps in New York City represented the professors. Painter is available to discuss arguments made in the brief.
In the brief, the professors urged the court to adopt a bright line rule that foreign plaintiffs alleging fraud in connection with securities purchased or sold outside the United States should not be permitted to sue foreign defendants in U.S. courts (securities litigation often referred to as "f-cubed": on behalf of foreign plaintiffs against foreign companies for trading on foreign exchanges).
“This ruling will provide predictability for transacting parties in the global securities market and avoid burdening United States courts with foreign disputes that are better resolved by the courts of countries involved," Painter says.
Painter is an expert in securities law and regulation, corporate governance, government ethics and professional responsibility.
To interview Painter, contact Patty Mattern in the University of Minnesota News Service at firstname.lastname@example.org or (612) 624-2801.
Expert Alert is a service provided by the University News Service. Delivered regularly, Expert Alert is designed to connect university experts to today's breaking news and current events. For an archive and other useful media services, visit http://www.umn.edu/news. Views expressed by experts do not represent the views of the University of Minnesota.