Parkcentral v. Porsche: Security-based Swaps on Foreign Securities Not Subject to 10(b) Liability | Practical Law
In a matter of first impression, the Second Circuit Court of Appeals held, in Parkcentral Global Hub Ltd. v. Porsche Auto. Holdings SE, that security-based swaps (SBS) referencing stocks traded exclusively in foreign jurisdictions could not be the basis of liability under Section 10(b) of the Securities Exchange Act of 1934 for statements made in foreign jurisdictions by foreign individuals, despite the fact that the SBS trades themselves took place in the US.