A Contemporary Challenge for Securities Fraud Litigation after the Morrison v. National Australia Bank Case

As worldwide securities markets continue to integrate rapidly, it is important that Congress undertake a complete, thoughtful, and nuanced consideration before giving a legal shape to the challenge of fraud securities litigation. A contemporary challenge is now a prominent market decline as the recent crisis brings questions of legal responsibility which are no longer confined to one single jurisdiction, but rather spans the world. The purpose of this article is to present this contemporary challenge for the securities fraud litigation after the Morrison case. By covering the historical development of fraud securities litigation within the U.S., this article assesses the implications of the Morrison case on fraud securities litigation, discusses how SEC could employ approaches and strengthen its ability to enforce the post-Morrison fraud securities litigation, and then offers a critical analysis of the post-Morrison cases. This is followed by a review of conduct-effects tests and global fraud securities litigation. With these reviews in mind, this article concludes with an invitation and recommendation for the SEC to re-examine and reconsider its contemporary regulatory reach, especially after the Morrison case, which expresses the most recent and relevant word from the U.S. Supreme Court on the topic.