Former Goldman Sachs salesperson Fabrice Tourre lost a bid for a ruling that he wasn’t liable under U.S securities laws for foreign transactions while the U.S. Securities and Exchange Commission won a ruling that Tourre violated a provision of U.S. securities law.
Bloomberg reports that Tourre had sought summary judgment, or a ruling before trial, in a lawsuit filed against him by the SEC. U.S. District Court Judge Katherine Forrest in Manhattan this week denied his motion and granted the SEC a partial ruling that Tourre had violated a provision of the Securities and Exchange Act.
Tourre, citing a 2010 U.S. Supreme Court ruling, claimed he couldn’t be held liable under U.S. securities laws for foreign transactions, such as those he made for Dusseldorf, Germany-based IKB Deutsche Industriebank, which allegedly lost almost all of its $150m investment, and ABN Amro Bank, which assumed the credit risk associated with a portion of a CDO called Abacus.
Under the Morrison v. National Australia Bank ruling by the Supreme Court, Tourre argued the SEC’s claims should be dismissed because they involved transactions outside the U.S.
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