# Section 7216 `kaal:entity:section-7216` **Status.** derived This node is assembled mechanically from the 13 claims that carry the concept tag `section-7216`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 13 claims across 1 works, 2010 to 2010. **2010** - [1664809-008](https://wulfkaal.github.io/claims/1664809-008) [definitional/asserted] -- Section 7216 of the Wall Street Reform and Consumer Protection Act of 2009 would extend federal antifraud jurisdiction to conduct within the United States constituting significant steps in furtherance of a violation, even when the securities transaction occurs abroad and involves only foreign investors. > conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs outside the United States and Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-009](https://wulfkaal.github.io/claims/1664809-009) [condition/argued] -- The significant steps standard of section 7216 is probably broader than the Second Circuit's conduct and effect test, and the proposed statutory language would therefore reach a wider range of defendants. > statutory language in section 7216 is arguably broader than the Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-010](https://wulfkaal.github.io/claims/1664809-010) [predictive/argued] -- If section 7216 is enacted and covers section 10(b), the United States could become a magnet for global class actions, and US lawyers would benefit from securities litigation tourism much as UK lawyers have benefited from libel tourism. > a magnet for global class actions'. 24 US lawyers may benefit Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-013](https://wulfkaal.github.io/claims/1664809-013) [predictive/argued] -- If section 7216 becomes law and permits extraterritorial application of US antifraud provisions, it would further incentivize forum shopping by plaintiffs' attorneys. > further incentivize forum shopping by plaintiffs' attorneys. Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-019](https://wulfkaal.github.io/claims/1664809-019) [condition/argued] -- Under section 7216 US law could apply to EU companies accused of conduct violating US securities laws even if those companies have no securities traded in the United States. > conduct violating US securities laws, even if they have no securi- Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-020](https://wulfkaal.github.io/claims/1664809-020) [failure/argued] *(failure mode)* -- Section 7216 could have the opposite effect of forcefully exporting US law onto other jurisdictions including Europe, even though it would be preferable for other nations to decide for themselves whether to have a class action litigation system. > 7216 could have the opposite effect of forcefully exporting US law Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-025](https://wulfkaal.github.io/claims/1664809-025) [predictive/argued] -- Enactment of section 7216 could make foreign cubed cases an integral part of the legal landscape in the United States and hence in Europe, ending the current situation in which most European companies are unaware of or unconcerned with that risk. > make foreign cubed cases an integral part of the legal landscape Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-027](https://wulfkaal.github.io/claims/1664809-027) [predictive/argued] -- If section 7216 extends US securities fraud provisions to non-US securities transactions, European financial intermediaries could become the dominant target for plaintiffs' attorneys. > intermediaries could become the dominant target for plaintiff's Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-029](https://wulfkaal.github.io/claims/1664809-029) [mechanism/argued] -- The defendants harmed by section 7216 would almost all be non-US financial intermediaries and issuers who are less able to defend themselves in the US political system, which helps explain why Congress is not seriously considering repeal of the PSLRA but is seriously considering section 7216. > be non-US financial intermediaries and issuers who are less able Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-030](https://wulfkaal.github.io/claims/1664809-030) [predictive/argued] -- If section 7216 is enacted, European plaintiffs and defendants will likely turn to the expertise of American law firms, which would further exacerbate the already difficult competitive situation of European law firms. > will likely turn to the expertise of American law firms. Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-032](https://wulfkaal.github.io/claims/1664809-032) [predictive/argued] *(failure mode)* -- If Congress enacts section 7216, EU investors will on the whole probably earn a lower return on their investments than they otherwise would, because the substantial costs the US litigation system imposes on EU companies will be passed on to investors. > enacts section 7216, EU investors will, on the whole probably, earn Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-035](https://wulfkaal.github.io/claims/1664809-035) [failure/argued] *(failure mode)* -- Section 7216 could be one more impediment to good diplomatic relations if the United States is perceived as establishing its courts as international courts in securities matters with universal jurisdiction. > 7216 could be one more impediment to good diplomatic relations if the United States is perceived as establishing its courts as inter- national courts in securities matters with universal jurisdiction. Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 - [1664809-038](https://wulfkaal.github.io/claims/1664809-038) [normative/asserted] -- European boards of directors and company lawyers should follow the Morrison decision and the section 7216 legislative process closely, prepare for the resulting changes, and ask Congress to reconsider section 7216. > European Boards of Directors and company lawyers should fol- low upcoming events closely and prepare themselves for these impending changes. They should also ask Congress to reconsider Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/section-7216.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.