Aiding And Abetting Liability For Securities Fraud

Law360, New York (September 28, 2009, 4:09 PM EDT) -- On the heels of a proposed bill that seeks to undo the Iqbal and Twombly heightened pleading standard, Sen. Arlen Specter, D-Pa., along with other Senate Democrats, has introduced Senate Bill 1551, “The Liability for Aiding And Abetting Securities Violations Act of 2009,” which would permit plaintiffs to pursue claims against secondary parties, such as lawyers and accountants, for aiding and abetting securities fraud. The United States Supreme Court has repeatedly denied this type of claim.

The bill seeks to amend 15 U.S.C. § 78t(e) to...
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