15 U.S.C. § 77v — Jurisdiction of offenses and suits

Page 164 TITLE 15—COMMERCE AND TRADE § 77v § 77v. Jurisdiction of offenses and suits (a) Federal and State courts; venue; service of process; review; removal; costs The district courts of the United States and the United States courts of any Territory shall have jurisdiction of offenses and violations under this subchapter and under the rules and regulations promulgated by the Commission in respect thereto, and, concurrent with State and Territorial courts, except as provided in section 77p of this title with respect to covered class ac- tions, of all suits in equity and actions at law brought to enforce any liability or duty created by this subchapter. Any such suit or action may be brought in the district wherein the defendant is found or is an inhabitant or transacts busi- ness, or in the district where the offer or sale took place, if the defendant participated there- in, and process in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. In any action or proceeding instituted by the Commission under this subchapter in a United States district court for any judicial dis- trict, a subpoena issued to compel the attend- ance of a witness or the production of docu- ments or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence. Judgments and decrees so rendered shall be sub- ject to review as provided in sections 1254, 1291, 1292, and 1294 of title 28. Except as provided in section 77p(c) of this title, no case arising under this subchapter and brought in any State court of competent jurisdiction shall be removed to any court of the United States. No costs shall be assessed for or against the Commission in any proceeding under this subchapter brought by or against it in the Supreme Court or such other courts. (b) Contumacy or refusal to obey subpena; con- tempt In case of contumacy or refusal to obey a sub- pena issued to any person, any of the said United States courts, within the jurisdiction of which said person guilty of contumacy or re- fusal to obey is found or resides, upon applica- tion by the Commission may issue to such per- son an order requiring such person to appear be- fore the Commission, or one of its examiners designated by it, there to produce documentary evidence if so ordered, or there to give evidence touching the matter in question; and any failure to obey such order of the court may be punished by said court as a contempt thereof. (c) Extraterritorial jurisdiction The district courts of the United States and the United States courts of any Territory shall have jurisdiction of an action or proceeding brought or instituted by the Commission or the United States alleging a violation of section 77q(a) of this title involving— (1) conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities trans- action occurs outside the United States and involves only foreign investors; or (2) conduct occurring outside the United States that has a foreseeable substantial ef- fect within the United States. (May 27, 1933, ch. 38, title I, § 22, 48 Stat. 86; June 25, 1936, ch. 804, 49 Stat. 1921; June 25, 1948, ch. 646, § 32(b), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Aug. 10, 1954, ch. 667, title I, § 11, 68 Stat. 686; Pub. L. 91–452, title II, § 213, Oct. 15, 1970, 84 Stat. 929; Pub. L. 100–181, title II, § 209, Dec. 4, 1987, 101 Stat. 1253; Pub. L. 105–353, title I, § 101(a)(3), Nov. 3, 1998, 112 Stat. 3230; Pub. L. 111–203, title IX, §§ 929E(a), 929P(b)(1), July 21, 2010, 124 Stat. 1853, 1864.) Editorial Notes REFERENCES IN TEXT The Federal Rules of Civil Procedure, referred to in subsec. (a), are set out in the Appendix to Title 28, Ju- diciary and Judicial Procedure. CODIFICATION As originally enacted subsec. (a) contained references to the Supreme Court of the District of Columbia. Act June 25, 1936, substituted ‘‘the district court of the United States for the District of Columbia’’ for ‘‘the Supreme Court of the District of Columbia’’, and act June 25, 1948, as amended by act May 24, 1949, sub- stituted ‘‘United States District Court for the District of Columbia’’ for ‘‘district court of the United States for the District of Columbia’’. Pub. L. 100–181 struck out reference to the United States District Court for the District of Columbia. Previously, such reference had been editorially eliminated as superfluous in view of section 132(a) of Title 28, Judiciary and Judicial Pro- cedure, which provides that ‘‘There shall be in each ju- dicial district a district court which shall be a court of record known as the United States District Court for the district’’, and section 88 of Title 28 which provides that ‘‘the District of Columbia constitutes one judicial district’’. AMENDMENTS 2010—Subsec. (a). Pub. L. 111–203, § 929E(a), inserted after second sentence ‘‘In any action or proceeding in- stituted by the Commission under this subchapter in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Fed- eral Rules of Civil Procedure shall not apply to a sub- poena issued under the preceding sentence.’’ Subsec. (c). Pub. L. 111–203, § 929P(b)(1), added subsec. (c). 1998—Subsec. (a). Pub. L. 105–353 inserted ‘‘except as provided in section 77p of this title with respect to cov- ered class actions,’’ after ‘‘Territorial courts,’’ in first sentence and substituted ‘‘Except as provided in sec- tion 77p(c) of this title, no case’’ for ‘‘No case’’ in pe- nultimate sentence. 1987—Subsec. (a). Pub. L. 100–181 substituted ‘‘United States and’’ for ‘‘United States, the’’, struck out ‘‘, and the United States District Court for the District of Co- lumbia’’ after ‘‘Territory’’, and substituted ‘‘sections 1254, 1291, 1292, and 1294 of title 28’’ for ‘‘sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 225 and 347)’’. See Codification note above. 1970—Subsec. (c). Pub. L. 91–452 struck out subsec. (c) which related to immunity from prosecution of any in- dividual compelled to testify or produce evidence, docu- mentary or otherwise, after claiming his privilege against self-incrimination. 1954—Subsec. (a). Act Aug. 10, 1954, inserted ‘‘offer or’’ before ‘‘sale’’ in second sentence. Page 165 TITLE 15—COMMERCE AND TRADE § 77z–1 Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking. EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–353 not to affect or apply to any action commenced before and pending on Nov. 3, 1998, see section 101(c) of Pub. L. 105–353, set out as a note under section 77p of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91–452 effective on sixtieth day following Oct. 15, 1970, see section 260 of Pub. L. 91–452, set out as an Effective Date; Savings Provision note under section 6001 of Title 18, Crimes and Criminal Procedure. EFFECTIVE DATE OF 1954 AMENDMENT Amendment by act Aug. 10, 1954, effective 60 days after Aug. 10, 1954, see note under section 77b of this title. SAVINGS PROVISION Amendment by Pub. L. 91–452 not to affect any immu- nity to which any individual is entitled under this sec- tion by reason of any testimony given before the six- tieth day following Oct. 15, 1970, see section 260 of Pub. L. 91–452, set out as an Effective Date; Savings Provi- sion note under section 6001 of Title 18, Crimes and Criminal Procedure. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title. § 77w. Unlawful representations Neither the fact that the registration state- ment for a security has been filed or is in effect nor the fact that a stop order is not in effect with respect thereto shall be deemed a finding by the Commission that the registration state- ment is true and accurate on its face or that it does not contain an untrue statement of fact or omit to state a material fact, or be held to mean that the Commission has in any way passed upon the merits of, or given approval to, such security. It shall be unlawful to make, or cause to be made to any prospective purchaser any representation contrary to the foregoing provi- sions of this section. (May 27, 1933, ch. 38, title I, § 23, 48 Stat. 87.) Executive Documents TRANSFER OF FUNCTIONS For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title. § 77x. Penalties Any person who willfully violates any of the provisions of this subchapter, or the rules and regulations promulgated by the Commission under authority thereof, or any person who will- fully, in a registration statement filed under this subchapter, makes any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading, shall upon conviction be fined not more than $10,000 or imprisoned not more than five years, or both. (May 27, 1933, ch. 38, title I, § 24, 48 Stat. 87; Pub. L. 94–29, § 27(a), June 4, 1975, 89 Stat. 163.) Editorial Notes AMENDMENTS 1975—Pub. L. 94–29 substituted ‘‘$10,000’’ for ‘‘$5,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94–29 effective June 4, 1975, see section 31(a) of Pub. L. 94–29, set out as a note under section 78b of this title. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title. § 77y. Jurisdiction of other Government agencies over securities Nothing in this subchapter shall relieve any person from submitting to the respective super- visory units of the Government of the United States information, reports, or other documents that may be required by any provision of law. (May 27, 1933, ch. 38, title I, § 25, 48 Stat. 87.) § 77z. Separability If any provision of this chapter, or the applica- tion of such provision to any person or cir- cumstance, shall be held invalid, the remainder of this chapter, or the application of such provi- sion to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. (May 27, 1933, ch. 38, title I, § 26, 48 Stat. 88.) § 77z–1. Private securities litigation (a) Private class actions (1) In general The provisions of this subsection shall apply to each private action arising under this sub- chapter that is brought as a plaintiff class ac- tion pursuant to the Federal Rules of Civil Procedure. (2) Certification filed with complaint (A) In general Each plaintiff seeking to serve as a rep- resentative party on behalf of a class shall provide a sworn certification, which shall be personally signed by such plaintiff and filed with the complaint, that— (i) states that the plaintiff has reviewed the complaint and authorized its filing;