Bringing Back Liability For Secondary Actors?

Law360, New York (October 9, 2009, 3:15 PM EDT) -- In Central Bank of Denver NA v. First Interstate Bank of Denver NA, 511 U.S. 164 (1994), the United States Supreme Court held that defendants must make a false or misleading statement in order to be primary violators of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934.

The court also held that there is no private cause of action for aiding and abetting under Section 10(b) and Rule 10b-5. This meant that secondary actors who do not generally make public statements, such...
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