On March 4, 2021, the Second Circuit upheld a district court order dismissing a foreign securities case. The suit was “foreign-cubed”: it had a foreign plaintiff (a subsidiary of a Brazilian bank); it had foreign defendants (a Brazilian mining company and affiliated entities); and it involved foreign securities (corporate notes issued in Brazil). Such claims can be brought in the United States only if the fraud connects to a domestic transaction. Consistent with the position advanced in WLF’s brief, the Second Circuit held that the transactions were not domestic. The court explained that using United States dollars and New York bank accounts does not make a transaction domestic.
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