Will Rule 10b-5 Go Global?

In 2010, the Supreme Court’s decision in Morrison v. National Australia Bank eliminated the right of investors who purchased shares on foreign exchanges to sue for fraud under Section 10b-5 of the Securities Exchange Act. In this article for The Advocate (the quarterly journal published by the Litigation Section of the State Bar of Texas), Dona Szak and Courtney Scobie provide an overview of the Morrison decision, look at how Congress and the SEC have reacted to the Court’s holding, and review recent case law applying Morrison.