Did SCOTUS Breathe Life Into Section 20(b)?

Law360, New York (July 15, 2011, 11:52 AM EDT) -- The U.S. Supreme Court recently held in Janus Capital Group Inc. et al. v. First Derivative Traders[1] that the “maker” of a statement under Securities Exchange Act Rule 10(b) and Rule 10b-5 is limited to the person or entity with ultimate authority over the statement, including its content and mode of communication.[2]

The opinion has been widely discussed and criticized for declining to extend liability to a mutual fund’s investment adviser despite its close relationship to the mutual fund and its involvement in preparing the prospectuses...
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