United States Second Circuit

In an action asserting fraud claims under the federal securities laws, the district court's dismissal of the complaint is: 1) reversed insofar as it was based on lack of subject matter jurisdiction, since the question whether section 10(b) of the Exchange Act applies to certain conduct is a merits question; 2) affirmed because the complaint did not sufficiently allege the existence of domestic securities transactions, and therefore failed to state claims under section 10(b); and 3) remanded to give the plaintiffs leave to amend the complaint so they could assert additional facts to suggest that irrevocable liability was incurred or title passed in the United States and thus that the securities transactions at issue took place in the United States.

Appellate Information

• Decided 03/01/2012
• Published 03/01/2012

Judges

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Linda Imes, Thomas V. Reichert