The 2nd Circuit has refused to adopt a bright-line rule barring so-called "foreign-cubed" securities transactions, in which foreign plaintiffs sue in U.S. courts foreign issuers of securities for violations of U.S. securities laws based on transactions in foreign countries. The court cited the shared goal of governments around the world to combat securities fraud as one policy reason for largely adhering to its precedent in determining that jurisdiction should be determined on a case-by-case basis.
2nd Circuit Declines to Bar 'Foreign-Cubed' Securities Lawsuits
New York Law Journal
October 27, 2008