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California Supreme Court

Case Status

Decided

Docket Number

S141028

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Review denied

March 15, 2006

The California Supreme Court declined review of the appeals court's decision.

U.S. Chamber addresses extraterritorial application of California’s securities law

February 27, 2006

In a case that could have significant implications for multinational corporations doing business in California, NCLC argued that the appeals court set a dangerous precedent in exposing officers and directors of corporations to lawsuits brought by non-resident plaintiffs for alleged misconduct. NCLC urged the California Supreme Court to adhere to the internal affairs doctrine, which provides for uniformity and predictability involving states of incorporation. NCLC asserted that local and state laws shouldn’t be allowed to trump laws of the state where a business is incorporated.

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