Law360, New York (May 02, 2012, 7:21 PM ET) -- Courts deciding U.S. Securities and Exchange Commission enforcement suits against brokerage firms must analyze alleged misstatements made by individual brokers to individual investors, rather than just the firm's public statements, the Eleventh Circuit said Wednesday in a precedential ruling.
The decision by a three-judge panel drew on the U.S. Supreme Court’s standard for determining the materiality of a certain statement — that is, whether a reasonable investor would view it as significantly altering all information about an investment. The Supreme Court has cautioned that courts should take into account the...
Brokers' Remarks Material In SEC Suits, 11th Circ. Says
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