Legal Translation Services for Cross-Border Litigation
As securities-fraud lawsuits go global, the need for professional legal translation services is on the rise. Late last year the United States District Court for the District of New Jersey entered a ruling that essentially excludes all non-U.S. purchasers of Shell securities from becoming a party in a class action lawsuit for security fraud filed in the United States.
If this decision to deny jurisdiction after the filing of a settlement with a foreign court is upheld, it will likely have far-reaching effects on where and how global class action suits are brought. The basis of the Court’s decision is twofold.
First, the Court found insufficient minimal contacts between the non-U.S. purchasers and the U.S and/or a U.S.-based institution.
Second, the Court took significant account of the global Settlement Agreement filed in the Amsterdam Court of Appeals in April of last year, in accordance with the Dutch Act on Collective Settlement. The intent of the settlement is to resolve the claims of all non-U.S. purchasers.
What this means is the incentive to bring class actions involving foreign transactions in the U.S. becomes greatly reduced. Instead, what is likely to happen is more class action lawsuits will be brought under European law, particularly the Dutch Act on Collective Settlement of Mass Damages. The result will be an increased need for foreign language translations and foreign language interpreters during all stages of cross-border securities and debt litigation. As the European Union has numerous legal systems operating under various languages, foreign language translations will be needed for all stages of filing a class action suit, including translations of foreign law, translating business agreements and translating settlement agreements.
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