The court said Thursday that foreigners may not sue American or foreign firms for misconduct in connection with securities traded on foreign exchanges.
The case involved a challenge from Australian investors who want to sue the Melbourne-based National Australia Bank for securities fraud in Unied States federal court. The investors say they should have access to American courts because the claim of fraud relies on the actions of a bank-owned mortgage servicing company in Florida.
“This case involves no securities listed on a domestic exchange,” Justice Antonin Scalia said in his majority opinion. The court voted 8-0 against the investors. Justice Sonia Sotomayor took no part in the case.
The ruling could affect an ongoing lawsuit against the Paris-based Vivendi media group. In January, a jury decided in favor of American and European shareholders who said Vivendi lied to the public about its shaky finances.
The plaintiffs in that case have put the potential payout to investors at $9.3 billion, although a lawyer for Vivendi has said it’s impossible to estimate the amount of money involved.