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Clifford Chance

Briefings

Defending Against U.S. Trading-Related Investigations and Litigation: Do the U.S. Securities and Commodities Laws Reach Foreign Conduct?

October 11, 2019

Two recent appellate court decisions shed light on the limited circumstances in which regulators and private plaintiffs can pursue claims for violations of the U.S. securities and commodities laws for conduct occurring outside the United States.

Taken together, the Scoville and Prime International Trading decisions provide opportunities for persons defending securities and commodities actions involving overseas conduct to achieve an early and efficient favorable resolution. In order to take advantage of any such opportunities, a keen understanding of the territorial limits of the applicable laws will be critical. Persons subject to such actions would be well advised to seek experienced counsel who understand not only the applicable U.S. laws, but also the commercial realities of the markets in question, including the ways in which non-U.S. and U.S. segments of those markets interact.

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