United States Second Circuit

In a suit by nine Cayman Islands hedge funds alleging fraudulent trading of securities by their investment managers, the district court's judgment is: 1) reversed insofar as it dismissed the complaint for lack of subject matter jurisdiction, because whether section 10(b) of the Exchange Act applies to certain conduct is a "merits" question; but 2) affirmed in its dismissal of the complaint, where the complaint failed to state claims under section 10(b) and Rule 10b-5 because it did not adequately allege the existence of domestic securities transactions.

Appellate Information

• Decided 04/13/2012
• Published 04/13/2012

Judges

• Katzmann

Court

• United States Second Circuit

Counsel

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