Investors who bought shares in Switzerland-based UBS AG on exchanges outside the United States cannot sue the banking giant over its sharp stock drop as a result of its exposure to risky securities, a federal judge has ruled, citing last year’s U.S. Supreme Court decision in Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869.
Southern District Judge Richard J. Sullivan ruled yesterday in In re UBS Securities Litigation, 07-cv-11225, that both so-called “foreign squared” investors—American investors who bought stock in a foreign company on a foreign exchange—and “foreign cubed” investors—foreign investors who bought stock in a foreign company on a foreign exchange—lacked standing to bring a securities fraud suit under U.S. law, even if the foreign transactions had an impact in 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This content has been archived.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.
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]