Do The Securities Laws Reach Conduct By Secondary Actors?

Law360, New York (May 11, 2006, 12:00 AM EDT) -- Until the Supreme Court’s decision in Central Bank of Denver v. First Interstate Bank of Denver, 511 U.S. 164 (1994), plaintiffs in private actions routinely alleged that secondary actors who did not directly engage in conduct proscribed by the securities laws were nevertheless liable if they knowingly rendered substantial assistance to a defendant who had engaged in securities violations. This avenue became unavailable when, in Central Bank, the Supreme Court held that the securities laws “prohibit only the making of a material misstatement (or omission) or...
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