Whether Justice Scalia chopped down the “judicial oak which ha[d] grown from little more than a legislative acorn” or cleared an entire forest of “botanically distinct tree[s]” when he created the transactional test in Morrison v. National Australia Bank, Ltd., he undoubtedly changed the legal landscape for both international and antifraud securities laws. The transactional test—which the Supreme Court designed to act as a bright-line rule to supplant the older “conduct” and “effects” tests developed by the Second Circuit—gauges whether a U.S. court can hear an antifraud securities case containing extraterritorial elements.

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