Law Commons^™

Scienter Required For Civil Liability Under Sec Rule 10b-5, William H. Buckley

Mercer Law Review

In Ernst & Ernst v. Hochfelder, the U. S. Supreme Court held that an action for civil damages cannot be maintained under §10(b) of the Securities and Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5, unless there is an allegation of the defendant's intent to deceive, manipulate or defraud. Thus, some element of scienter is required, and liability cannot be imposed for negligent conduct alone.

The suit arose following exposure of a fraudulent securities scheme perpetrated by Leston B. Nay, president and principal stockholder of First Securities Company of Chicago (First Securities), a member of the …

Standing Under Rule 10b-5 After Blue Chip Stamps, Michigan Law Review

Michigan Law Review

The purpose of this Note is to analyze the opinion in Blue Chip and to ascertain the content of the Birnbaum rule as it exists today. It will first discuss the opinion of the Court in Blue Chip itself and delineate the primary policy considerations upon which the majority focused. It will then apply these policy considerations to the major categories of case law that have arisen subsequent to Birnbaum and analyze the validity of this case law in light of Blue Chip.

An Economic Analysis Of Section 16(B) Of The Securities Exchange Act Of 1934

William & Mary Law Review

No abstract provided.

Fiduciaries And Fairness Under Rule 10b-5, Thomas J. Sherrard

Vanderbilt Law Review

In Marshel v. AFW Fabric Corp., decided on February 13,1976, the court unanimously sustained a challenge to long-form merger under New York law for the sole purpose of "going private,"concluding that despite full disclosure, the merger itself constituted a fraudulent scheme because it represented an attempt by the majority stockholders, in violation of their fiduciary obligations, to utilize corporate funds strictly for personal benefit and for no legitimate corporate purpose...

It is the purpose of this article to analyze the Green and Marshel decisions against the backdrop of previous cases in the area of fraudulent mismanagement, to gauge their impact …

The Elusive Limited Offering Exemption Of The Utah Uniform Securities Act, Ralph R. Mabey, Alan L. Smith

BYU Law Review

No abstract provided.

Definition Of Control In Secondary Distributions, Rutheford B. Campbell Jr.

Law Faculty Scholarly Articles

Section 2(11) of the Securities Act of 1933 (Act) generally subjects the sale of securities by a person "controlling an issuer" to the same rules that govern the sale of securities by an issuer. Accordingly, before a "control" person may sell the securities he holds in the controlled corporation he must either register them with the Securities and Exchange Commission (Commission) or qualify for an exemption from the registration requirement. While the Act clearly requires that a "control" person either register or qualify for an exemption, it fails to define "control." Thus, the task of defining has fallen to the …

Bank Securities Activities And The Need To Separate Trust Departments From Large Commercial Banks, Thomas J. Schoenbaum

University of Michigan Journal of Law Reform

This article (1) analyzes the traditional Glass-Steagall Act restrictions on banks and the leading case of Investment Company Institute v. Camp, where the Supreme Court held that the offering by commercial banks of commingled agency accounts violated the Glass-Steagall Act prohibition against underwriting securities, (2) considers the. developments since that decision, and (3) offers suggestions on an approach to devising solutions to the policy questions involved.

Santa Fe Industries, Inc. V. Green, Lewis F. Powell Jr.

Supreme Court Case Files

No abstract provided.

E.I. Du Pont De Nemours & Co. V. Collins, Lewis F. Powell Jr.

Supreme Court Case Files

No abstract provided.

The Private Action Against A Securities Fraud Aider And Abettor: Silent And Inactive Conduct, Clyde A. Billings, Jr.

Vanderbilt Law Review

This Note will examine the origins of the aiding and abetting cause of action and the development of a theory of liability based solely upon passive conduct. After an examination of the elements of the cause of action and defenses, a proposed definition of "aiding and abetting" will be offered. The effect of the recent Supreme Court decision Ernst & Ernst v. Hochfelder upon aiding and abetting liability, the scienter requirement, and the duties owed by potential aiders and abettors will be discussed. Treatment of aiding and abetting by the Federal Securities Code 19 also is mentioned.

Treasury Shares And Pre-Emptive Rights: Schwartz V. Marien, Barbara G. Edman

Buffalo Law Review

No abstract provided.

Securities Law—Damages For Violation Of Section 14(E) Of The Securities Exchange Act Of 1934: Chris-Craft Industries, Inc. V. Piper Aircraft Corporation, Mary Christine Carty

Buffalo Law Review

No abstract provided.

Federal Securities Law—Fraud—Supreme Court Affirmation Of The Birnbaum Rule—Blue Chip Stamps V. Manor Drug Stores, 421 U.S. 723 (1975), Douglass A. North

Washington Law Review

This note will examine the historical background and development of the Birnbaum rule and will consider the Supreme Court's reasoning in its first examination of that rule. Taking the position that the Birnbaum rule is generally a useful one, this note nevertheless suggests that the rule should be applied more flexibly in the future in order to achieve its twin objectives of admitting valid claims and excluding nuisance suits. Particularly questioned will be the Court's failure to delineate and consider separately the validity of the substantive portion of the Birnbaum rule; the Court's wholehearted acceptance of the rule, which casts …

I. Rule 10b-5

Washington and Lee Law Review

No abstract provided.

Liens--Priority Of Common Law Liens And Secured Interests In West Virginia, Willard Craig Broadwater

West Virginia Law Review

No abstract provided.

Securities--Liability For Short-Swing Profits Under Section 16(B), Vincent A. Collins

West Virginia Law Review

No abstract provided.

The Private Placement Exemption And The Blue Sky Laws-Shoals In The Safe Harbor, Robert M. Royalty, Thomas E. Jones, Jr.

Washington and Lee Law Review

No abstract provided.

1975-1976 Securities Law Developments

Washington and Lee Law Review

No abstract provided.

Ii. Tender Offers: Injunctive Relief Under The Williams Act

Washington and Lee Law Review

No abstract provided.

Iii. Section 16 (B)

Washington and Lee Law Review

No abstract provided.

Iv. Securities Exchanges And The Antitrust Laws

Washington and Lee Law Review

No abstract provided.

Municipal Bonds--The Need For Disclosure, Daniel R. Schuda

West Virginia Law Review

No abstract provided.

Municipal Securities Rulemaking Board: A New Concept Of Self-Regulation, Roswell C. Dikeman

Vanderbilt Law Review

The municipal securities industry, an important segment of the national capital markets, directly affects both the quality of life and the pace of community development throughout the nation. Municipal securities, broadly defined to include all debt securities issued or guaranteed by the states and their political subdivisions,' are the vehicle by which states, their agencies, and local governments finance both long- and short-term debt requirements. In calendar 1975, for example, the municipal securities industry raised approximately 29.2 billion dollars in long-term issues. In 1973, 8,147 long- and short-term issues raised almost 48 billion dollars, or approximately one-quarter of all direct …

Disclosure By Issuers Of Municipal Securities: An Analysis Of Recent Proposals And A Suggested Approach, Robert D. Tuke

Vanderbilt Law Review

The following considerations impacting on the disclosure issue have been developed in this Note: the uniqueness of the municipal securities industry, owing to the diverse natures of the securities, the wide variety of issuers, and the particular means of marketing the securities; the special circumstances created for underwriters by the competitive bidding process; the varied roles of other participants in the distribution process--fiscal agents, bond counsel, governmental accountants; the existing state machinery for regulation and control; the practical limitations on the SEC--both in staff capacity and expertise; the need for uniformity in disclosure to prevent weakened marketability of municipal securities …

Foreign Bribes And The Securities Acts' Disclosure Requirements, Michigan Law Review

Michigan Law Review

The Securities Act of 1933 and the Securities Exchange Act of 1934 require most major corporations to disclose to investors all material information concerning company operations. Although they were not intended to regulate the conduct of business, these disclosure obligations can have a deterrent effect upon improper corporate activities. The recent revelation that a significant number of corporations have been making bribes and similar payments abroad has created interest in the feasibility of employing the disclosure requirements to curtail this practice. This Note will show that, despite recent pressures for change, the Securities and Exchange Commission has continued to view …

Recent Cases, Richard T. Hurt, Jay D. Christiansen, William J. Rees, William D. Gutermuth

Vanderbilt Law Review

Constitutional Law--Action Under Color of State Law--Legislative Authorization of Private Action Resembling Public Function Constitutes Action Under Color of State Law

The instant case creates a two to two split in the circuits on the question whether the seizure of a tenant's possessions under a land-lord lien statute is action under color of state law. The decisions in Davis and Anastasia provide the potential for abuse that Fuentes was designed to prevent-the indiscriminate entry into the debtor's home and seizure of his belongings without prior notice and hearing.Hall and the instant opinion, however, provide a more equitable result. While the …

A Reconsideration Of The Stock Market Exception To The Dissenting Shareholder's Right Of Appraisal, Michigan Law Review

Michigan Law Review

This Note engages in such a reassessment. It contends, first, that appraisal has not been an unreasonable burden on corporations and that adjustments in the appraisal procedure can eliminate remaining inequities. Next, it asserts that the stock market exception inadequately protects the dissenting shareholder, since a market might, for a variety of reasons, price a shareholder's stock at less than its intrinsic value. Finally, this Note concludes that an appraisal procedure with modifications, and not the stock market exception, reflects the appropriate balance of corporate and shareholder interests.

A Framework For The Allocation Of Prevention Resources With A Specific Application To Insider Trading, Michigan Law Review

Michigan Law Review

This Note enumerates and analyzes the three principal forces that induce individuals to abide by societal laws. These forces, or elements of effective prevention, are then combined to form a framework of general deterrence that both identifies the areas in which society can introduce resources into the prevention plan and explains in a general manner what the effect of particular expenditures will be. In the final section of the Note, the framework is applied to a specific prohibited activity-insider trading in securities-to exemplify its utility in determining more effective applications of prevention resources.

Extraterritorial Application Of § 10(B) Of The Securities Exchange Act Of 1934-The Implications Of Bersch V. Drexel Firestone, Inc. And Lit V. Vencap, Ltd.

Washington and Lee Law Review

No abstract provided.

Controlling Administrative Sanctions, Fredrich H. Thomforde Jr.

Michigan Law Review

This Article will consider some of the possibilities for controlling and guiding the SEC's discretion to impose sanctions upon broker-dealers. Although it is limited to an examination of the Commission's practice and a discussion of possibilities for reform, the analysis contains obvious implications for any agency with the power to impose sanctions.