Federal Court Finds There Can Be No Control Person Liability Without Primary Violator Privity
Yesterday, I covered Judge Lewis A. Kaplan’s holding in In re Lehman Bros. Securities & Erisa Litigation, 2012 U.S. Dist. LEXIS 148177 (Oct. 15, 2012) that there is no liability under Corporations Code Section 25400 when the plaintiff and defendant dealt in different securities. Judge Kaplan also considered the parameters of liability under Corporations Code Section 25504. That statute imposes liability on, among others, control persons, as Read more...
