- Category
- Client Alerts
- Date
- June 05, 2009
- Title
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Securities Litigation Alert: Fourth Circuit Holds That Investment Adviser and Public Company Parent May Face Federal Securities Law Liability for False Statements in Mutual Fund’s Prospectus; Discusses Test for Attribution Requirement
The federal courts have recently rendered varying decisions on two related questions key to determining liability under Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5: first, what exactly constitutes the "making" of a purported misstatement for purposes of the securities laws, and second, to what extent can a party be held responsible for a statement not explicitly attributed to it? The Fourth Circuit has recently weighed in on these issues taking a potentially less literal and restrictive approach than that espoused by other courts.
Media Attachments
Related People
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Arthur H. Aufses III
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- Counsel
- Author
- New York
- vcard
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Alan R. Friedman
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- Counsel
- Author
- New York
- vcard
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