Janus Applies to Section 17(a) Securities Fraud Actions, "Scheme" Liability Cannot be Based on Misstatements (SDNY) | Practical Law

Janus Applies to Section 17(a) Securities Fraud Actions, "Scheme" Liability Cannot be Based on Misstatements (SDNY) | Practical Law

An update on SEC v. Kelly, in which the US District Court for the Southern District of New York (SDNY) held that the Supreme Court's holding in Janus Capital Group, Inc. v. First Derivative Traders applies to claims alleging fraud under Section 17(a) of the Securities Act, and scheme liability under Rule 10b-5(a) and (c) cannot be based on a misstatement.

Janus Applies to Section 17(a) Securities Fraud Actions, "Scheme" Liability Cannot be Based on Misstatements (SDNY)

by PLC Corporate & Securities
Published on 29 Sep 2011 • USA (National/Federal)
An update on SEC v. Kelly, in which the US District Court for the Southern District of New York (SDNY) held that the Supreme Court's holding in Janus Capital Group, Inc. v. First Derivative Traders applies to claims alleging fraud under Section 17(a) of the Securities Act, and scheme liability under Rule 10b-5(a) and (c) cannot be based on a misstatement.