Monday, November 23, 2009
The Financial Times reports today (Nov. 23, 2009) on page 1 that the Investor Protetcion Act ("IPA"), a new federal statute making its way through the U.S. Congress, will make it "easier for investors to sue foreign companies in US courts," even if those companies are not based in the United States and listed only on overseas exchanges. The IPA will require only that "significant steps" toward the alleged fraud have been taken in the United States.
Not surprisingly, EU officials and others have expressed concern over the potential reach of the new legislation. But as the Financial Times says: "Litigation is part of America's DNA."