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Article: Securities fraud.
- Article from:
- International Law Update
- Article date:
- September 1, 2008
CopyrightCOPYRIGHT 2008 Transnational Law Associates. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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IN CASE CONCERNING EXTRATERRITORIAL APPLICATION OF U.S. RULE IOB, SECOND CIRCUIT ENCOUNTERS "FOREIGN-CUBED" SECURITIES ACTION FOR FIRST TIME AND RULES THAT ACTIONS BY AUSTRALIAN BANK AS TO AMERICAN COMPANY DID NOT REQUIRE APPLICATION OF RULE IOB TO ITS ACTIONS
In 1998, National Australia Bank (NAB), headquartered in Melbourne, acquired HomeSide Lending, Inc. (HomeSide), an American mortgage service company. HomeSide had made inaccurate assumptions about its future earnings, causing NAB to suffer several write-downs, along with falling share values.
The Plaintiffs in this case bought NAB shares that lost value, and sued NAB, HomeSide, as well as certain ...