Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
U.S. Supreme Court Limits Securities Fraud Liability to Parties with “Ultimate Authority” over Misstatements
June 15, 2011
Rule 10b-5 of the Securities and Exchange Commission declares it unlawful for "any person, directly or indirectly, . . . to make any untrue statement of a material fact" in connection with the purchase or sale of securities. In Janus Capital Group, Inc. v. First Derivative Traders, No. 09-525 (June 13, 2011), the Supreme Court ruled that for purposes of a private action under Rule 10b-5, a person "make[s]" a statement only if that person "is the person or entity with ultimate authority over the statement, including its content and whether and how to communicate it."