U.S. Supreme Court building in Washington, D.C. September 30, 2022. Photo: Diego M. Radzinschi/ALM Rule 10b-5 Liability, Part 1: The Supreme Court and 'Janus'
The author's goal of his three-part series is to ultimately discuss the Second Circuit's recent Securities law landmark case, S.E.C. v. Rio Tinto. However, in order to discuss Rio Tinto, he believes it is important to first understand the Supreme Court landmark cases upon which Rio Tinto is based: Janus Capital Group, Inc. v. First Derivative Trader and S.E.C v. Lorenzo. Janus is discussed here in the first installment.
March 14, 2023 at 10:00 AM
9 minute read
As today's headlines swirl with lurid allegations of securities fraud, daily reports of investigations and indictments, and the pleas of swindled investors for justice (and, to be sure, pecuniary recompense), we are mindful that Rule 10b-5, long the ultimate weapon of prosecutors, regulators, and private litigants, subdivides offenses under the federal securities law into three, broad categories: employing a "scheme" to defraud; "mak[ing]" a material misrepresentation or omission; or engaging in "any act" which "operate[s] as a fraud or deceit." 17 C.F.R. §240.10b-5. See also 15 U.S.C. §78(j).
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