In an opinion issued yesterday, Judge Furman allowed the majority of securities fraud claims against a state-owned sovereign wealth fund in Kazakhstan to proceed, denying the fund’s motion to dismiss on sovereign immunity and other grounds.  The plaintiffs purchased notes in a Kazakh bank majority owned by the fund.  The notes were sold only over the Kazakhstan and Luxembourg stock exchanges, but over 80% of the notes were denominated in U.S. dollars. Recognizing that state actors are generally immune to suit in a U.S. court, Judge Furman held that the sovereign wealth fund’s actions fit the “commercial activities” exception to the rule:
Continue Reading “Commercial Activities” Exception to Sovereign Immunity Rule Applies to Kazakhstan-Owned Investment Fund