Foreign companies could be sued more easily in US courts under legislation working through Congress. The Investor Protection Act, approved by the House financial services committee this month, contains a provision to make it easier for investors to sue public companies in the US even if they are based abroad and listed on overseas exchanges.
Litigation, notes Lex, is part of America’s DNA: “Should changes buried within a regulatory reform bill pass into law, so-called “F-cubed” claimants – foreign investors, in foreign companies, on foreign exchanges – might find it easier to seek compensation in the US.”