Morrison v. National Australia Bank Ltd. drastically altered the landscape for transnational securities litigation and the way that courts determine proper application of a statute concerning a transnational claim. The Supreme Court’s characterization of extraterritoriality under the Securities Exchange Act as a merits-based inquiry has led to a reexamination of limitations under other federal statutes that were previously thought to be jurisdictional issues. Significantly, Morrison created a road map for courts to follow when the extraterritoriality of a statute is brought into question. The key to proper application of a statute is to decipher the minimum U.S. contacts required to state a transnational claim. The tests developed addressing this inquiry are critical in discerning the boundaries of U.S. law at a time when transnational dealings are prevalent.
Marc I. Steinberg and Kelly Flanagan, Transnational Dealings - Morrison Continues to Make Waves (2012). Available at SSRN: https://ssrn.com/abstract=2205416