Andre Dubai is the CEO of Lacota, a firm headquartered in Portugal. Lacota has acquired 10 companies in the United States. One of the companies is publicly traded on NASDAQ. Lacota does not have the reporting mechanisms, ethics codes, or board structure for its NASDAQ company that are required under U.S. laws for publicly traded companies. Dubai says that he and Lacota have sovereign immunity from U.S. laws. Which of the following is true?
a. The courts will not rule on this issue.
b. Lacota cannot be forced to comply with U.S. securities laws because U.S. courts have no jurisdiction over it.
c. Dubai, Lacota, and their NASDAQ company must comply with U.S. laws.
d. Dubai is correct; the business is, for all purposes, located in Portugal.

The United States of America is a country that requires by law that publicly traded companies (which are companies where capital is comprised of shares that are traded on the stock exchange.) Report reporting mechanisms, codes of ethics or corporate structure. so that they can be implemented in the US, even if they are foreign companies. For this reason, Dubai cannot claim to have sovereign immunity to US laws, so it is mandatory that Dubai, Lacota and their NASDAQ company comply with US laws if Dubai wishes to establish their companies in the country.