In Loginovskaya v. Batratchenko ("Loginovskaya"), the US Court of Appeals for the Second Circuit ruled in a 2-1 opinion that private commodities fraud claims under the Commodity Exchange Act (the "CEA") may proceed only if the plaintiff has alleged a commodities transaction within the United States, even though the defendants and their allegedly fraudulent conduct were in the United States. With this, the Second Circuit has applied to the CEA the same territorial limitations that apply to securities fraud cases under the US Supreme Court's decision in Morrison v. National Australia Bank Ltd. ("Morrison"). Significantly, Loginovskaya applied Morrison's presumption against the extraterritorial application of US law to the CEA provision that gives individual plaintiffs the right to sue for CEA violations generally, as opposed to just the CEA's anti-fraud provision. Thus, Loginovskaya can be read as broadly limiting the extraterritorial reach of the CEA not only as to prohibited conduct, but also as to who may sue under the CEA for alleged violations of the statute or its associated regulations.
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