Securities Law Alert, September 2013
This edition of the Alert addresses two Second Circuit decisions: one ruling that the limits on the extraterritorial application of Section 10(b) established in Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869 (2010) apply with equal force to criminal actions under Section 10(b); and another holding that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) precludes Madoff-related state law claims against JPMorgan Chase & Co. and the Bank of New York Mellon because those claims concern Madoff’s purported transactions in covered securities.
We also discuss a Delaware Supreme Court decision declining to broaden the fraud exception to the continuous ownership rule for shareholder derivative standing set forth in Lewis v. Anderson, 477 A.2d 1040 (Del. 1984).