Congress Mulling Aiding And Abetting Legislation

Law360, New York (November 13, 2009, 5:47 PM EST) -- On July 30, 2009, Sen. Arlen Specter, D-Pa., introduced legislation that would establish a private right of action for aiding and abetting violations of the Securities Exchange Act of 1934 (“Exchange Act”).

Entitled the “Liability for Aiding and Abetting Securities Violations Act of 2009”, the bill (S. 1551) would “allow for a private civil action against a person that provides substantial assistance in violation of [the Exchange Act].”[1]

If enacted, the bill would largely (though not entirely) restore the law regarding the liability of secondary actors...
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