The fault lines between primary liability and aiding and abetting claims under Rule 10b-5

Article Abstract:

Third party professionals who aid in the preparation of communications issued to investors are receiving judicial guidance on their potential primary liability under the Securities and Exchange Act of 1934. No claim for aiding and abetting exists under rule 10b-5 of the Act according to the US Supreme Court in Central Bank v. First Interstate Bank. This holding encouraged primary liability suits against third party professionals, which resulted in new court doctrine distinguishing primary from accessory liability, such as the independent statement test.

Laws, regulations and rules, Malpractice, Accomplices

---

The plaintiffs' decision to sue auditors in securities litigation: private enforcement or opportunism?

Article Abstract:

Statistical analysis of 315 securities class action lawsuits settled between 1990 and 1993 yielded empirical evidence for the contention of many accountants that plaintiffs' attorneys exploit laws against securities fraud by filing frivolous suits aimed at forcing settlements from corporations and their independent auditors. The data indicated that many of these suits are filed without proper pre-filing investigation and auditors are included as defendants because of their deep pockets.

Class actions (Civil procedure), Class action lawsuits, Statistics, Accounting firms, Accounting services, Frivolous suits (Civil procedure)

---

Some procedural defenses for foreign defendants in American securities litigation

Article Abstract:

Defenses foreign securities holders, directors and officers can use when sued in U.S. courts are discussed. Defenses relating to jurisdiction and venue, forum non conveniens and abstention based on the pendency of civil actions in the foreign issuer's home country are among the examples included.

International aspects, Securities industry, Foreign securities, Defense (Civil procedure)

Similar abstracts:

• Abstracts: The choice between formal and infomal modes of administrative regulation. Administrative informality in Japan: governmental activities outside statutory authorization
• Abstracts: The relationship between outcomes in collective bargaining and teachers' decisional participation state
• Abstracts: Parent-subsidiary communications and the attorney-client privilege. Antitrust divestiture in network industries
• Abstracts: Fourteen tips and traps in dealing with Chapter 14. New concerns about the administration of a GRAT or QPRT. The quest for the zeroed-out GRAT: Walton says it can be done
• Abstracts: The extraterritoriality of the Bankruptcy Code: will the borders contain the code? The new European law on international insolvencies: a German perspective

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.