Law360, New York (October 30, 2007, 12:00 AM EDT) -- The Hon. Graham C. Mullen, the United States district court judge for the Western District of North Carolina, dealt the Securities and Exchange Commission a serious setback in its efforts to impose trading restrictions on hedging activity in the market for private placements in public equities (PIPEs).
With any luck, Judge Mullen's ruling, issued Oct. 24, 2007, may be the beginning of the end for the SEC's attempted application of Section 5 of the Securities Act of 1933 (Section 5) to PIPEs.
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