The 'Maker' Of A Statement Under Section 10(b)

Law360, New York (June 13, 2011, 1:25 PM EDT) -- In a 5-4 decision, the Supreme Court of the United States in Janus Capital Group Inc. v. First Derivative Traders has interpreted the meaning of the phrase "to make" in Rule 10b-5 promulgated under Section 10(b) of the Securities Exchange Act of 1934. Under Rule 10b-5, it is unlawful for "any person, directly or indirectly, ... [t]o make any untrue statement of a material fact" in connection with the purchase or sale of securities." 17 CFR §240.10b–5(b).

The Supreme Court held that, "[f]or purposes of Rule...
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