U.S. Federal Court Denies Immunity to Sovereign Wealth Funds
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Key takeaways
- The U.S. Foreign Sovereign Immunities Act (“FSIA”) applies to securities fraud claims brought against sovereign wealth funds in the United States.
- Sovereign wealth funds are immune from suit in the United States unless one of the exceptions set forth in the FSIA applies.
- There will be no immunity from suit when misrepresentations made in connection with the funds’ commercial activity outside the United States cause economic harm to investors in the United States.