SEC Fails First Test Of Section 5 Claim

Law360, New York (November 12, 2007, 12:00 AM EST) -- The Securities and Exchange Commission failed in its first judicial test of what the Honorable Graham C. Mullen, the United States district court judge for the Western District of North Carolina, called its “creative” interpretation of Section 5 of the Securities Act of 1933. 

Prior to this setback, the SEC had procured settlements in several similar cases, however on Oct. 24, 2007, Judge Mullen rejected the SEC’s theory and dismissed its Section 5 claim against John Mangan, Jr.

The SEC filed a complaint in December 2006 against Mr....
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.