In 2010, the Supreme Court decided Morrison v. National Australia Bank Ltd. addressing the extraterritorial application of the Exchange Act of 1934. In the late 1960s, the Second Circuit developed a set of tests, known as the 'effects' and 'conduct' test, which allowed for extraterritorial enforcement of §10b. In Morrison, the Supreme Court overturned the Second Circuit precedents establishing a new test. This essay looks at the history, current trends, and possible future developments extraterritoriality of securities enforcement. Specifically, John Koury examines whether §78aa(b) of the Dodd-Frank Act could establish jurisdiction similar to the old 'effects' and 'conduct' test. Finally, this piece considers whether subsequent decisions have resurrected a ghost of Leasco's 'conduct' test.
Extraterritoriality for Securities Fraud Post-Morrison,
Emory Corp. Governance & Accountability Rev.
Available at: https://scholarlycommons.law.emory.edu/ecgar/vol1/iss1/9