Second Circuit Defines Extraterritorial Reach of Exchange Act Section 10(b)
On March 1, 2012, the Second Circuit issued a decision in Absolute Activist Value Master Fund Ltd. v. Ficeto, defining the extraterritorial reach of Section 10(b) of the Securities Exchange Act of 1934 - an issue previously left open by the Supreme Court in Morrison v. National Australia Bank Ltd. The Court of Appeals held that "to sufficiently allege a domestic securities transaction in securities not listed on a domestic exchange, . . . a plaintiff must allege facts suggesting that irrevocable liability was incurred or title was transferred within the United States."