Fraud Claims Based on French Trades Of NYSE-Listed Stock Barred by Morrison

Securities fraud claims by investors who purchased their stock on a French stock exchange are barred by the U.S. Supreme Court’s recent decision in Morrison v. National Australia Bank Ltd. governing extraterritorial transactions, the U.S. District Court for the Southern District of New York concluded Sept. 14 (In re Alstom SA Securities Litigation).

In a decision by Judge Victor Marrero, the court granted the defendants’ summary judgment motion, even though the securities at issue were listed on the New York Stock Exchange, and the transactions allegedly were “initiated in the United States.”

ADRs.

The court recounted that this ...