Toshiba ADR Investors in a Catch-22
A recurring challenge in defining the geographic scope of U.S. securities law is how to characterize non-exchange-based transactions in American Depositary Receipts (ADRs). Under the Supreme Court’s Morrison test, such transactions have to qualify as “domestic” to trigger the application of U.S. law. If they don’t, the assumption is that investors would have to litigate…
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