Law360, New York (December 30, 2008, 12:00 AM EST) -- In a recent novel decision, SEC v. Tambone, ___ F.3d ___ (1st Cir. 2008), available at 2008 U.S. App. LEXIS 24457, the First Circuit held that the SEC had adequately alleged a primary violation of Section 10(b) and Rule 10b-5(b) for material misstatements "impliedly" made by the defendants.
A sharply worded dissent criticized the Court's holding for enlarging the scope of primary liability and blurring the line between primary and secondary liability that the Supreme Court recently drew in Stoneridge.
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