California Appellate Tracker

Automotive Industries Pension Trust Fund v. Toshiba Corp.

August 15, 2018

A transaction between US citizens and Toshiba, a foreign corporation, was sufficiently “domestic” to be subject to the Securities Exchange Act because the US citizens purchased, in the US, American Depository Shares or Receipts entitling them to the shares of the foreign issuer.

Applying Morrison v. National Australia Bank, Ltd. (2010) 561 U.S. 247, this decision holds that the district court erred in dismissing a complaint by US citizens under section 10(b) and 20(a) of the Securities Exchange Act arising from alleged fraud by a foreign issuer of securities in connection with the US citizens’ purchase in the US of American Depository Shares or Receipts entitling them to the shares of the foreign issuer. Plaintiffs could amend to state that they incurred the liability to take and pay for securities, and Toshiba incurred the liability to deliver securities in the US on the over-the-counter market and that the fraud was in connection with plaintiff’s purchases. That sufficed to make transaction “domestic” and subject to the Securities Exchange Act.

Ninth Circuit Court of Appeals (Wardlaw, J.); July 17, 2018; 2018 U.S. App. LEXIS 19640

Subscribe to California Appellate Tracker

Thank you for your desire to subscribe to Severson & Werson’s Appellate Tracker Weblog. In order to subscribe, you must provide a valid name and e-mail address. This too will be retained on our server. When you push the “subscribe button”, we will send an electronic mail to the address that you provided asking you to confirm your subscription to our Weblog. By pushing the “subscribe button”, you represent and warrant that you are over the age of 18 years old, are the owner/authorized user of that e-mail address, and are entitled to receive e-mails at that address. Our weblog will retain your name and e-mail address on its server, or the server of its web host. However, we won’t share any of this information with anyone except the Firm’s employees and contractors, except under certain extraordinary circumstances described on our Privacy Policy and (About The Consumer Finance Blog/About the Appellate Tracker Weblog) Page. NOTICE AND AGREEMENT REGARDING E-MAILS AND CALLS/TEXT MESSAGES TO LAND-LINE AND WIRELESS TELEPHONES: By providing your contact information and confirming your subscription in response to the initial e-mail that we send you, you agree to receive e-mail messages from Severson & Werson from time-to-time and understand and agree that such messages are or may be sent by means of automated dialing technology. If you have your email forwarded to other electronic media, including text messages and cellular telephone by way of VoIP, internet, social media, or otherwise, you agree to receive my messages in that way. This may result in charges to you. Your agreement and consent also extend to any other agents, affiliates, or entities to whom our communications are forwarded. You agree that you will notify Severson & Werson in writing if you revoke this agreement and that your revocation will not be effective until you notify Severson & Werson in writing. You understand and agree that you will afford Severson & Werson a reasonable time to unsubscribe you from the website, that the ability to do so depends on Severson & Werson’s press of business and access to the weblog, and that you may still receive one or more emails or communications from weblog until we are able to unsubscribe you.

I Agree

Effective, Experienced, Exceptional.

California Appellate Tracker

Automotive Industries Pension Trust Fund v. Toshiba Corp.

Categories

San Francisco

Severson & Werson

Orange County

Severson & Werson