The Morrison decision overturned decades of case law in which the lower courts struggled to apply the then-applicable “conduct and effects” test to determine whether or not the U.S. securities were applicable in any given circumstance. In a decision written by the late Justice Antonin Scalia, the Court said in Morrison that the U.S. securities laws apply only to “transactions in securities listed on domestic exchanges, and domestic transactions in other securities.”
The first prong of this standard has proven relatively straight forward. However, the second prong, pertaining to “domestic transactions,” has, according to the law firm memo’s authors, “proven considerably more difficult to apply.”
Three sets of recurring issues have developed as the courts have set about trying to interpret and apply Morrison’s second prong, according to the law firm memo’s authors.
‘Enforcement 40’ for 2020
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