Abstract

This article examines the problems raised by international securities class actions in the U.S. federal law. With increasing frequency plaintiffs are filing before U.S. courts the so-called foreign cubed securities fraud cases that are actions filed against a foreign issuer on behalf of foreign investors who purchased securities of the issuer on a foreign exchange. In particular, this study analyzes under what conditions U.S. federal courts accept to hear these cases that have weak links with the U.S. jurisdiction, and when, from a European perspective, the recourse to U.S. courts may become a viable alternative to domestic securities litigation private enforcement.