Press Release

25 June 2010

MORRISON V. AUSTRALIA NATIONAL BANK

US Supreme Court strikes blow at growing army of UK investors making claims in US courts.

In a much anticipated decision, the United States Supreme Court has imposed restrictions on the use of the US courts by UK investors pursuing claims against non-US companies. The case was regarded with such importance that the UK Government made its own submissions to the court.

David Greene class action lawyer and head of litigation at Edwin Coe LLP said "In Morrison v. Australia National Bank the Supreme Court has dealt a severe blow to a growing army of investors, particularly pension funds, that have been starting and joining class actions in the US courts claiming damages for fraudulent claims made to investors by quoted companies."

"The issue in Morrison was whether a foreign investor could litigate in the US a claim against a non US company relating to the purchase of shares on a non US exchange. Due to the combination of foreign elements this is often termed as "f cubed" litigation."

"For many years the courts have taken different views of these actions and UK investors have been able to take advantage of a degree of uncertainty with different courts taking different views on whether to allow actions or not. The courts applied various tests and often allowed claims to proceed but now the only question that will be asked is where were the shares bought."

"For UK investors, the US courts and process have had substantial attraction and the way in which US lawyers work on contingencies often mean the investor has nothing to lose. Not surprisingly UK investors have been waking up to theses advantages and crossing the Atlantic to litigate. There has been some speculation for instance that UK institutions were looking at commencing proceedings against BP in the US."

"It is by no means the end of that traffic but the investors are going to need a strong connection with the US to use the class action process. Also it's not a complete block on f cubed claimants but removes some of the prime advantages of litigation in the US."

"Many companies being pursued in US actions will breathe a sigh of relief; the European claimants in claims such as against RBS, may be forced out of the class and to litigate in Europe. But it could drive some investors to purchase shares on the US exchanges rather than London to ensure the US courts are open to them."

ENDS

For further information, please contact:

David Greene
t: +44 (0)20 7691 4000
m: +44 (0)7768 301 221
e:

Edwin Coe LLP is the leading firm of lawyers in representing groups and classes in litigation in the UK; it acted for the shareholders in Railtrack, Northern Rock and Langbar; it represents investors in Madoff, Lehman Brothers and AIG.  It has also recently represented CAMRA in a challenge to the OFT and depositors with Icelandic banks.

Edwin Coe was founded in 1913 and is ranked as a ‘UK 200’ law firm. It provides a full range of commercial legal services to a diverse range of clients both in the UK and overseas. Clients include public and private companies, multinationals, sovereign states, charities and unincorporated associations, and a significant number of private clients. Edwin Coe is ranked in Chambers as a leading mid-market litigation firm, and in the Legal 500 for commercial property and insurance work.

Edwin Coe LLP, 2 Stone Buildings, Lincoln's Inn, London WC2A 3TH Tel: 020 7691 4000 www.edwincoe.com