Ga.'s Take On Holmes V. Grubman

Law360, New York (March 9, 2010, 1:21 PM EST) -- On Feb. 8, 2010, the Georgia Supreme Court issued an opinion in response to three certified questions submitted by the U.S. Court of Appeals for the Second Circuit, holding that, under Georgia common law:

1) “holder” claims are actionable;

2) plaintiffs in misrepresentation or omission claims involving publicly traded securities must prove loss causation; and

3) a limited fiduciary relationship exists between registered representatives and clients, even in nondiscretionary accounts.[1]

The court’s opinion represents a significant departure from existing law and is described further below....
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