By: Gregory VanderWoude, 2L, Journal Staff Member
After electing its new prime minister, Greece was able to negotiate a four-month extension in its bailout, buying time to repay its creditors. See Greece Bailout: EU ‘mediating Greek Row with Spain and Portugal, http://www.bbc.com/news/world-europe-31696596. In today’s globally connected economy, it is unremarkable for a sovereign nation—Greece—to approach other countries (that is, the Eurozone) for assistance. As sensible as that sounds, the remedies in the United States for plaintiff-investors who have been defrauded appear not to recognize this global state of affairs. As John Birkenheier and George Vasios explain, the Supreme Court has held that Section 10(b) of the Securities Exchange Act only applies to transactions involving securities registered in the U.S. or to domestic transactions in securities that are not registered on a U.S. exchange. See generally, Morrison v. National Australia Bank Ltd., 561 U.S. 247 (2010). Thus, even though foreign securities may also be listed on a domestic exchange, if the securities were purchased outside the United States, they do not meet the Morrison criteria. See e.g., In Re Royal Bank of Scotland Grp. PLC Sec. Litig., 765 F.Supp.2d 327 (S.D.N.Y. 2011).