fbpx
News
April 5, 2017

Judge Says Dodd-Frank Lets SEC Sue Over Foreign-Traded Securities

U.S. District Judge Jill Parrish gave a “precedent-setting opinion” last week in SEC v. Traffic Monsoon, saying that Dodd-Frank extended the jurisdiction of U.S. courts to hear SEC or DOJ cases involving foreign-traded securities as long as the defendant’s alleged misconduct took place or had a substantial effect in the U.S., writes Reuters.

Judge Parrish is the first federal judge to make a formal decision on the question of whether Dodd-Frank overrides Morrison in cases brought by the SEC or DOJ. Morrison was abolished by Congress one month prior to the passage of Dodd-Frank.

“This decision raises the possibility that foreign companies with no securities listed or sold in the United States may face a greater threat of federal securities liability from the SEC and the U.S. Department of Justice,” wrote Cleary Gottlieb Steen & Hamilton. 

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

Cookie Notice

By clicking “I Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Review Settings