Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

In the Courts

BY ALM Staff
October 28, 2013

Second Circuit: Section 10(b) and Rule 10b-5 Do Not Apply to Extraterritorial
Securities Fraud

On Aug. 30, 2013, the United States Court of Appeals for the Second Circuit held in United States v. Vilar, — F.3d —, 2013 WL 4608948, *1 (2d Cir. Aug. 30, 2013) that criminal liability under the Securities fraud prohibitions of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 does not extend to conduct relating to the extraterritorial purchase or sale of securities. The case is the latest in a series of decisions following Morrison v. National Australia Bank Ltd., in which the U.S. Supreme Court confirmed that U.S. securities fraud legislation only proscribed fraud in connection with “transactions in securities listed on domestic exchanges, and domestic transactions in other securities.” ”' U.S. ”', 130 S.Ct. 2869, 2884, 177 L.Ed.2d 535 (2010).

United States v. Vilar involved two prominent investment managers who were convicted by a jury in 2008 on multiple counts of securities fraud, investment adviser fraud, mail fraud, wire fraud and money laundering. Id. at *3. One defendant was sentenced to five years' imprisonment and the other to nine years' imprisonment. Id. Both were ordered to pay nearly $35 million in restitution to the victims of their schemes. Id. On appeal, the defendants raised many challenges to their convictions and the legitimacy of their sentences, including, most notably, an argument that the conduct underlying their convictions was extraterritorial and, thus, not within the conduct proscribed under Section 10(b) or Rule 10b-5 as interpreted under Morrison. Id.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.