My addled brain might be failing me, if memory serves Scamville's attorneys tried a similar argument as the professors using Morrison. Congress had already provided clarification on this matter.


As a result of Morrison, investors have been stripped of the ability to seek redress against those who have harmed them in a transnational securities fraud.

The United States Congress, realizing the danger, immediately responded to mitigate the Supreme Court’s decision. The first step was to fully restore the ability of the Securities and Exchange Commission (“SEC” or “Commission”) and the Department of Justice (“DOJ”) to bring enforcement actions6 under Section 10(b) in cases involving transnational securities fraud pursuant to the pre-Morrison tests of conduct and effect.7 The second step was to request that the Commission conduct a Study on the Extraterritorial Scope of the Private Rights of Action under Section 10(b) of the Exchange Act (“Study”).8


SEC.gov | Statement by Commissioner: Defrauded Investors Deserve Their Day in Court



The court rejected Traffic Monsoon’s arguments. It acknowledged that Congress has not amended Section 10(b) to address extraterritoriality. But it held that Section 929P(b)’s plain language and
legislative history are sufficient to overcome the presumption against extraterritoriality. The court noted that Congress drafted and was finalizing Section 929P(b) before Morrison was decided, and that it was commonly understood at the time thatSection 10(b)’s extraterritorial application was a jurisdictional issue. Given that context, the court held, the jurisdictional amendments evidenced Congress’ intent that Sections 10(b) and 17(a) apply extraterritorially for purposes of enforcement. The court then found that Traffic Monsoon took significant steps in the U.S. to further AdPack sales,[11] thereby satisfying the conduct prong of the conduct and effects test. Accordingly, it granted the commission’s motion and entered a preliminary injunction against Traffic Monsoon.

https://www.mmlawus.com/newsitem/pdf...5472458197.pdf