Wachtell fleshed out its mention of British shareholder litigation against the company with a bunch of exhibits detailing how three prominent members of the U.S. shareholder bar – Scott & Scott, Grant & Eisenhofer and Kessler Topaz Meltzer & Check – are devoting their time and effort to litigating abroad on behalf of Tesco shareholders rather than in the U.S. for holders of ADRs. The Tesco case exemplifies how the Supreme Court’s Morrison ruling, in conjunction with the U.K.’s Financial Services and Markets Act of 2000, has changed securities litigation against global companies. A mere 2.5 percent of Tesco’s float is in U.S. ADRs. So instead of fighting in federal court to bring claims on behalf of ADR holders, savvy U.S. plaintiffs’ firms are figuring out how to represent the vastly larger pool of ordinary Tesco shareholders.
via Tesco moves to toss U.S. securities case – but real action is in U.K. — On the Case
