U.S. Court of Appeals for the First Circuit

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Case Updates

First Circuit rules on ‘primary’ liability for ‘secondary’ actors under section 10(b)

March 10, 2010

The First Circuit, in an en banc ruling, held that underwriters do not make implied statements that could support primary Rule 10b-5(b) liability when they distribute prospectuses. The decision places a roadblock in front of class action plaintiffs that would seek to drag underwriters into 10b-5 litigation.

U.S. Chamber files amicus brief

September 01, 2009

NCLC supported rehearing en banc and then filed a supplemental brief urging the First Circuit to reject a previous decision by a three-judge panel that dramatically expanded liability for fraudulent statements under federal securities laws. In this case, employees of a mutual fund underwriter distributed a prospectus the SEC alleges they knew was misleading. The defendants, however, did not draft the prospectus.

First Circuit invites NCLC to file amicus brief 2/23/09. Amicus brief supporting rehearing en banc filed 4/22/09. Rehearing en banc granted 7/22/09. Supplemental brief filed 9/1/09. Decided 3/10/10.

Case Documents