Pursuing Foreign Fraud Claims on American Soil

Unfortunately for the S.E.C., suggestions to allow for a greater number of lawsuits are unlikely to generate much support on Capitol Hill. Opponents are likely to say that more litigation means greater expenses for companies and encourages potentially frivolous claims. Add in the mantra that litigation costs jobs and makes companies fearful of going public, and any recommendation to tinker with the Supreme Court’s narrow test for securities fraud is likely to fall on deaf ears.

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