15 U.S.C. § 78aa — Jurisdiction of offenses and suits

Page 449 TITLE 15—COMMERCE AND TRADE § 78aa EFFECTIVE DATE OF 1986 AMENDMENT Amendment by Pub. L. 99–571 effective 270 days after Oct. 28, 1986, see section 401 of Pub. L. 99–571, set out as an Effective Date note under section 78o–5 of this title. 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. § 78z. Unlawful representations No action or failure to act by the Commission or the Board of Governors of the Federal Re- serve System, in the administration of this chapter shall be construed to mean that the par- ticular authority has in any way passed upon the merits of, or given approval to, any security or any transaction or transactions therein, nor shall such action or failure to act with regard to any statement or report filed with or examined by such authority pursuant to this chapter or rules and regulations thereunder, be deemed a finding by such authority that such statement or report is true and accurate on its face or that it is not false or misleading. It shall be unlawful to make, or cause to be made, to any prospec- tive purchaser or seller of a security any rep- resentation that any such action or failure to act by any such authority is to be so construed or has such effect. (June 6, 1934, ch. 404, title I, § 26, 48 Stat. 902; Pub. L. 105–353, title III, § 301(b)(5), Nov. 3, 1998, 112 Stat. 3236.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’. See References in Text note set out under section 78a of this title. AMENDMENTS 1998—Pub. L. 105–353 substituted ‘‘Board of Governors of the Federal Reserve System’’ for ‘‘Federal Reserve Board’’. 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. § 78aa. Jurisdiction of offenses and suits (a) In general The district courts of the United States and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall have exclusive jurisdiction of violations of this chapter or the rules and reg- ulations thereunder, and of all suits in equity and actions at law brought to enforce any liabil- ity or duty created by this chapter or the rules and regulations thereunder. Any criminal pro- ceeding may be brought in the district wherein any act or transaction constituting the viola- tion occurred. Any suit or action to enforce any liability or duty created by this chapter or rules and regulations thereunder, or to enjoin any violation of such chapter or rules and regula- tions, may be brought in any such district or in the district wherein the defendant is found or is an inhabitant or transacts business, and process in such cases may be served in any other district of which the defendant is an inhabitant or wher- ever the defendant may be found. In any action or proceeding instituted by the Commission under this chapter 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 Federal Rules of Civil Proce- dure shall not apply to a subpoena issued under the preceding sentence. Judgments and decrees so rendered shall be subject to review as pro- vided in sections 1254, 1291, 1292, and 1294 of title 28. No costs shall be assessed for or against the Commission in any proceeding under this chap- ter brought by or against it in the Supreme Court or such other courts. (b) 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 the anti- fraud provisions of this chapter 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. (June 6, 1934, ch. 404, title I, § 27, 48 Stat. 902; 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; Pub. L. 100–181, title III, § 326, Dec. 4, 1987, 101 Stat. 1259; Pub. L. 111–203, title IX, §§ 929E(b), 929P(b)(2), July 21, 2010, 124 Stat. 1853, 1865.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this title’’. See References in Text note set out under section 78a of this title. 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 section 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- Page 450 TITLE 15—COMMERCE AND TRADE § 78aa–1 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 words had been editorially eliminated as superfluous in view of section 132(a) of Title 28, Judiciary and Judicial Proce- dure, which provides that ‘‘There shall be in each judi- cial 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—Pub. L. 111–203, § 929P(b)(2), designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). Pub. L. 111–203, § 929E(b), inserted ‘‘In any action or proceeding instituted by the Commission under this chapter in a United States district court for any judi- cial district, a subpoena issued to compel the attend- ance 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 Federal Rules of Civil Procedure shall not apply to a subpoena issued under the pre- ceding sentence.’’ after ‘‘defendant may be found.’’ 1987—Pub. L. 100–181 struck out ‘‘, the United States District Court for the District of Columbia,’’ after ‘‘dis- trict courts of the United States’’ and substituted ‘‘sec- tions 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. 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. 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. § 78aa–1. Special provision relating to statute of limitations on private causes of action (a) Effect on pending causes of action The limitation period for any private civil ac- tion implied under section 78j(b) of this title that was commenced on or before June 19, 1991, shall be the limitation period provided by the laws applicable in the jurisdiction, including principles of retroactivity, as such laws existed on June 19, 1991. (b) Effect on dismissed causes of action Any private civil action implied under section 78j(b) of this title that was commenced on or be- fore June 19, 1991— (1) which was dismissed as time barred sub- sequent to June 19, 1991, and (2) which would have been timely filed under the limitation period provided by the laws ap- plicable in the jurisdiction, including prin- ciples of retroactivity, as such laws existed on June 19, 1991, shall be reinstated on motion by the plaintiff not later than 60 days after December 19, 1991. (June 6, 1934, ch. 404, title I, § 27A, as added Pub. L. 102–242, title IV, § 476, Dec. 19, 1991, 105 Stat. 2387.) Editorial Notes CONSTITUTIONALITY For information regarding the constitutionality of certain provisions of this section, see the Table of Laws Held Unconstitutional in Whole or in Part by the Su- preme Court on the Constitution Annotated website, constitution.congress.gov. § 78bb. Effect on existing law (a) Limitation on judgments (1) In general No person permitted to maintain a suit for damages under the provisions of this chapter shall recover, through satisfaction of judg- ment in 1 or more actions, a total amount in excess of the actual damages to that person on account of the act complained of. Except as otherwise specifically provided in this chapter, nothing in this chapter shall affect the juris- diction of the securities commission (or any agency or officer performing like functions) of any State over any security or any person in- sofar as it does not conflict with the provi- sions of this chapter or the rules and regula- tions under this chapter. (2) Rule of construction Except as provided in subsection (f), the rights and remedies provided by this chapter shall be in addition to any and all other rights and remedies that may exist at law or in eq- uity. (3) State bucket shop laws No State law which prohibits or regulates the making or promoting of wagering or gam- ing contracts, or the operation of ‘‘bucket shops’’ or other similar or related activities, shall invalidate— (A) any put, call, straddle, option, privi- lege, or other security subject to this chap- ter (except any security that has a pari-mu- tuel payout or otherwise is determined by the Commission, acting by rule, regulation, or order, to be appropriately subject to such laws), or apply to any activity which is inci- dental or related to the offer, purchase, sale, exercise, settlement, or closeout of any such security; (B) any security-based swap between eligi- ble contract participants; or (C) any security-based swap effected on a national securities exchange registered pur- suant to section 78f(b) of this title. (4) Other State provisions No provision of State law regarding the offer, sale, or distribution of securities shall apply to any transaction in a security-based swap or a security futures product, except that this paragraph may not be construed as lim- iting any State antifraud law of general appli- cability. A security-based swap may not be regulated as an insurance contract under any provision of State law. (b) Modification of disciplinary procedures Nothing in this chapter shall be construed to modify existing law with regard to the binding