US Court of Appeals for the Second Circuit Clarifies Standard for “Domestic Transactions” Prong of Morrison
23 April 2012
Mayer Brown Legal Update
The Second Circuit Court of Appeals has issued an opinion that addresses the ambiguity created by Morrison’s off-market transactions prong, announcing a standard for “domestic transactions” that combines tests proposed by both the Eleventh Circuit and the Southern District of New York. In addition to clarifying the legal standard, the opinion provides useful guidance as to what Second Circuit defendants may now argue in Morrison-based motions to dismiss.