Supreme Court rules securities company not liable to investors for misstatements

[JURIST] The US Supreme Court [official website; JURIST news archive] on Monday ruled [opinion, PDF] 5-4 in Janus Capital Group v. First Derivative Traders [Cornell LII backgrounder; JURIST report] that a service provider cannot be held primarily liable in a private securities fraud suit for aiding and participating in another company’s misstatements. Section 10(b) of the Securities and Exchange Act [materials] prohibits any manipulation or deception in connection with the purchase or sale of securities. The liability associated with the…

By |2011-07-29T01:02:31+00:00July 29th, 2011|Uncategorized|Comments Off on Supreme Court rules securities company not liable to investors for misstatements