You May Be Able to Utilize Alternative Service in Securities Actions
In an interesting decision arsing out of a securities fraud action, plaintiffs were allowed to serve a non-American defendant corporation’s chief executive officer - a citizen of Canada - by alternative means. See In re GLG Life Tech Corp. Securities Litigation, S.D.N.Y., 11 Civ. 09150 (KB) (GWG), 11/9/12.
The court indicated such service would provide notice to the corporation. This decision was not issued in a vacuum. This result was preceded by several attempted efforts at service and a foray into a negotiated waiver of service. When all of these efforts failed, the motion was filed. As such, the court indicated this alternative service would provide the required notice.
As securities litigation in many forms increasingly involves parties all over the globe, this decision may provide a blueprint for hauling international parties into an American court.