Articles

Jonathan Forman Article Discusses Significance of Recent Supreme Court Ruling on Securities Anti-Fraud Liability

Articles / April 30, 2019

An article written by Counsel Jonathan Forman was reprinted in Currents, the publication of the National Society of Compliance Professionals (NSCP) in April 2019. The article, “U.S. Supreme Court Skirts Janus Securities Liability for Distributing False or Misleading Information,” discusses a recent Supreme Court decision, Lorenzo v. Securities and Exchange Commission, that imposes primary liability on a person who disseminates false or misleading information to investors with intent to defraud, even if that person did not “make” the false or misleading statement. Among other things, the article notes that this decision now empowers the SEC and the plaintiffs’ bar to go after a broader class of potential defendants who may have had only a minor role in distributing allegedly misleading information.

Read the article.