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Standing Under Section 10(B) And Rule 10b-5: The Continued Validity Of The Forced Seller Exception To The Purchaser-Seller Requirement, Eric C. Chaffee
Standing Under Section 10(B) And Rule 10b-5: The Continued Validity Of The Forced Seller Exception To The Purchaser-Seller Requirement, Eric C. Chaffee
Eric C. Chaffee
Congress drafted section 10(b) of the Securities and Exchange Act of 1934 as a “catchall” antifraud provision to combat a wide variety of manipulative and deceptive activities that can occur in connection with the purchase or sale of a security. Based upon the power granted under section 10(b), the Security and Exchange Commission (“SEC”) enacted Rule 10b-5, and these provisions have become powerful tools in fighting securities fraud. Although Congress explicitly charged the SEC with enforcement of section 10(b) and Rule 10b-5, the Supreme Court of the United States has held that a private right of action exists based upon …