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9 - Jurisdiction and Applicable Law in Investor Suits

from Part II - The Scope of Investor Protection Regulation

Published online by Cambridge University Press:  20 October 2022

Arthur B. Laby
Affiliation:
Rutgers University, New Jersey School of Law
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Summary

Which court has competence over investor lawsuits and which rules will the court apply to such suits? It is hard to overestimate the significance of these questions for investor protection. The enforcement of investor rights crucially depends on which court will decide and which law it will follow. Importantly, the rules regarding jurisdiction and applicable law are not uniform around the world, but differ in a variety of ways. Consequently, investors may be able to enforce their rights in different countries under diverging legal frameworks, providing them with opportunities of forum shopping and applicable law shopping. Yet the uncoordinated nature of jurisdiction rules may also lead to a situation in which no court considers itself competent, leaving the investor without a forum and any effective remedy. All the more reason to dedicate particular attention to the issues treated in this contribution.

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Publisher: Cambridge University Press
Print publication year: 2022

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