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CALIFORNIA CORPORATE & SECURITIES LAW

How Chadbourne & Parke, LLC v. Troice Threatens The Defense Of The Guilty And The Innocent

The U.S. Supreme Court’s recent decision in Chadbourne & Parke, LLC v. Troice, 571 U.S. ___ (2014) arose out of the a multibillion dollar Ponzi scheme perpetrated by Allen Stanford.  The scheme involved the sale to investors of certificates of deposit in Stanford International Bank.  Mr. Stanford was convicted of mail fraud, wire fraud, conspiracy to commit money laundering, and…

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Court Holds Aiding And Abetting Liability Requires Material Assistance In The Violation

Corporations Code Section 25401 is the general anti-fraud provision of the Corporate Securities Law of 1968.  Section 25504.1 makes a person jointly and severally liable for a violation of Section 25401 if that person “materially assist in [the] violation of Section . . . 25401 . . . with the intent to deceive or defraud”.  Does this mean that…

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Supreme Court Resolves Janus Controversy But The Gates of War Are Not Entirely Closed

Yesterday, the U.S. Supreme Court issued its decision in Janus Capital Group, Inc. v. First Derivative Traders. In a 5-4 decision, the Court found that to be liable under Rule 10b-5, a person must “make” the material misstatement.  According to Justice Thomas writing for the majority, a person is a “maker” of a statement when that person…

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Supreme Court Weighs Opening The Janus Gate of Secondary Liability

The Supreme Court heard oral arguments in Janus Capital Group, Inc. v. First Derivatives Traders on Tuesday.  You can read the transcript here.  The SCOTUSblog posts transcripts of oral arguments.  If you are not up to reading the entire transcript, Jim Hamilton’s World of Securities Regulation posted this summary.  Mark Perry, on behalf of the…

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