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Daily Journal: Justices Seem Interested in Circuit Split over American Depositary Receipts

January 28, 2019

The US Supreme Court has asked US Solicitor General Noel Francisco to review a recent circuit court split over how the court’s precedent applies to securities that allow domestic investors to trade foreign corporate shares on American stock exchanges. Analysts believe this may be a sign that the high court will decide to resolve the dispute later down the road.

“It’s clearly got the attention of the securities bar,” said O’Melveny & Myers partner Seth Aronson, who is not involved in the case. “Those of us who defend foreign-based companies that issue ADRs (American depository receipts) in the US are watching this issue closely.”

The case in question is Toshiba Corp. v. Automotive Industries Pension Trust Fund.