The SEC and the US Solicitor General filed an amicus curiae brief in the Supreme Court recommending a framework to determine whether Section 10(b) of the Securities Exchange Act and Rule 10b-5 thereunder apply to transnational securities frauds involving overseas injuries experienced by foreign investors. The brief explains that a violation of Section 10(b) exists if the transnational securities fraud involves significant conduct in the United States that was material to the fraud's success. Where the U.S. conduct satisfies this standard, the SEC may maintain a civil enforcement action under Section 10(b). For foreign investors to maintain a private securities fraud action, however, the brief argues that an additional showing is required; they must demonstrate that the U.S. conduct was a direct cause of their overseas injury. Amicus Brief.