SEC Ends Losing Streak at SCOTUS, Over Thomas and Gorsuch Dissent
The justices' divided ruling Wednesday in Lorenzo v. SEC comes after two losses last term at the high court.
March 27, 2019 at 12:14 PM
6 minute read
The U.S. Supreme Court on Wednesday boosted the power of federal law enforcement to pursue securities law violations.
In a 6-2 decision, the high court held in Lorenzo v. Securities and Exchange Commission that sending an email containing false or misleading statements with the intent to defraud violates federal securities laws even if the sender did not “make” the statements. Justice Brett Kavanaugh, who earlier took part in the case in the U.S. Court of Appeals for the D.C. Circuit, was recused. Kavanaugh wrote a dissent that favored the challenger.
Justice Clarence Thomas, joined by Justice Neil Gorsuch, dissented Wednesday. They accused the majority of “eviscerating” the “clear line between primary and secondary liability in fraudulent-misstatement cases” drawn by the high court in its 2011 decision in Janus Capital Group v. First Derivative Traders.
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