Morrison v The National Australia Bank still impacts foreign law claims

u.s. courtRecently, federal courts addressed an arising question in the securities litigation suit, Kaynes v BP, PLC, dismissing the law suits brought by Canadian investors who purchased BP’s ordinary shares and ADRs on the NYSE. First, the Canadian shareholders filed litigation in Canada under the Ontario Securities Act in Canada. The court rejected the claims and seemed to endorse the U.S. Supreme Court decision in Morrison v The National Australia Bank by implementing a similar standard; “Order and fairness will be achieved by adhering to the prevailing international standard trying jurisdiction to the place where the securities were traded and a multiplicity of proceeding involving the same claims or class of claims will be avoided”.

After the Canadian Courts ruling, the plaintiffs then sued in the U.S. on behalf of Canadian investors that purchased on the NYSE, still asserting claims under the Ontario Securities Act. Prior to this, the U.S. courts gave the lead plaintiff the control to determine what claims to pursue on behalf of the class, which would not allow the Canadians to file a separate class action that the lead plaintiff chose not to pursue. The Morrison decision in 2010 is still playing a major role in  investors bringing foreign securities suits to a different jurisdiction.

Read more about the U.S. courts decision to dismiss foreign resident’s law claims here.

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