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SEC v. Banca Della Svizzera Italiana

United States District Court for the Southern District of New York

92 F.R.D. 111 (1981)

Relevant factsFree

Swiss bank BSI (defendant) bought and quickly resold St. Joe Minerals options for undisclosed investors just before a tender-offer announcement caused the stock to spike, netting nearly $2 million in profit; the SEC (plaintiff) sued alleging insider trading and sought to compel BSI to disclose the investors' identities, which BSI refused to do, citing Swiss banking secrecy law.

IssueFree

Whether a foreign party's bad faith in refusing to comply with a discovery request is a vital factor in deciding whether to compel discovery, when compliance might expose the party to legal action in its home country.

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