130 S. Ct. 2869 (2010)
The case of Morrison v. National Australia Bank Ltd.
Does Section 10(b) of the Securities Exchange Act of 1934 provide cause of action for securities fraud occurring outside of the United States?
Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of any deceptive devices in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered.
The Supreme Court held that Section 10(b) applies only to transactions in securities listed on domestic exchanges and domestic transactions in other securities.
Morrison is indispensable for law students as it sets a precedent limiting the extraterritorial applicability of U.S. securities laws, focusing on Congress's intent evident in the statutory text. It highlights the paramount importance of statutory interpretation in resolving issues of jurisdiction and respective legal applicability. For future securities law practitioners, understanding Morrison is essential for advising international clients on the risk exposure under U.S. securities laws.