| Table of Principal Cases |
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xxiii | |
| Acknowledgments - First Edition |
|
xxvii | |
| Acknowledgments - Second Edition |
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xxix | |
| Acknowledgments - Third Edition |
|
xxxi | |
| Acknowledgments - Fourth Edition |
|
xxxiii | |
| Acknowledgments - Fifth Edition |
|
xxxv | |
| Acknowledgments - Sixth Edition |
|
xxxvii | |
| Acknowledgments - Seventh Edition |
|
xxxix | |
| Preface |
|
xli | |
| Chapter 1 An Introduction to Securities Regulation |
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3 | (34) |
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3 | (3) |
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6 | (44) |
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6 | (44) |
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1.03 Reminiscing the SEC Years 19 |
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50 | |
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Years of the U.S. Securities and Exchange Commission |
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19 | (5) |
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24 | (2) |
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26 | (1) |
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1.05 Internationalization of the Securities Markets |
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27 | (1) |
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1.06 Selected Securities Law Research Sources |
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28 | (9) |
| Chapter 2 Definition of a "Security" |
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37 | (72) |
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37 | (4) |
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Wartzman v. Hightower Productions, Ltd. |
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37 | (2) |
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39 | (1) |
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40 | (1) |
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40 | (1) |
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2.02 The Meaning of "Investment Contract" |
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41 | (33) |
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Securities and Exchange Commission v. WI. Howey Co. |
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41 | (3) |
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44 | (1) |
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Continental Marketing Corp. v. Securities and Exchange Commission |
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45 | (2) |
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Securities and Exchange Commission v. Edwards |
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47 | (3) |
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A Profits "Solely" From the Efforts of Others |
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50 | (1) |
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B "Expectation of Profits" |
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51 | (1) |
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C The "Common Enterprise" Requirement |
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51 | (2) |
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53 | (1) |
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54 | (4) |
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57 | (1) |
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F Limited Liability Partnership (LLP) Interests |
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58 | (1) |
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G Limited Liability Company (LLC) Interests |
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58 | (4) |
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62 | (1) |
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I Condominiums - Property Interests Combined with Service Contracts |
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63 | (9) |
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Alunni v. Development Resources Group, LLC |
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65 | (7) |
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72 | (2) |
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2.03 The Emphasis on Economic Reality |
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74 | (16) |
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United Housing Foundation, Inc. v. Forman |
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74 | (6) |
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80 | (1) |
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80 | (1) |
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B The Sale of Business Doctrine |
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80 | (9) |
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Landreth Timber Company v. Landreth |
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82 | (6) |
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88 | (1) |
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89 | (1) |
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2.04 The Presence of Other Regulation and the Implications of Weaver |
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90 | (6) |
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90 | (4) |
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94 | (2) |
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96 | (13) |
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96 | (10) |
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96 | (9) |
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105 | (1) |
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B Certificates of Deposit |
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106 | (3) |
| Chapter 3 Primary Issuer Transactional Exemptions from Registration |
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109 | (112) |
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109 | (1) |
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3.02 Why Perfect a Transactional Exemption? |
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109 | (4) |
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3.03 Transactional Exemptions - Introductory Points |
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113 | (1) |
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114 | (2) |
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114 | (1) |
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115 | (1) |
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115 | (1) |
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116 | (1) |
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3.05 The Statutory Private Offering Exemption - Section 4(a)(2) |
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116 | (5) |
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Securities and Exchange Commission v. Ralston Purina Co. |
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117 | (2) |
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Case Law after Ralston Purina |
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119 | (2) |
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3.06 Rule 506 of Regulation D |
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121 | (17) |
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122 | (10) |
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Regulation D - Revision of Certain Exemptions from Registration Under the Securities Act of 1933 for Transactions Involving Limited Offers and Sales |
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122 | (5) |
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127 | (3) |
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Brown v. Earthboard Sports USA, Inc. |
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130 | (2) |
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132 | (6) |
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Increasing the Vulnerability of Investors |
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135 | (3) |
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3.07 The Limited Offering Exemptions |
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138 | (18) |
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139 | (2) |
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141 | (2) |
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143 | (1) |
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D The Section 3(b)(2) Exemption - Regulation A |
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144 | (11) |
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Regulation A+, March 25, 2015 |
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146 | (2) |
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Lindeen v. Securities and Exchange Commission |
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148 | (6) |
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154 | (1) |
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E Rule 1001- The "California" Exemption |
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155 | (1) |
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3.08 Substantial Compliance Standard and Filing of Form D |
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156 | (2) |
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3.09 The Web and General Solicitation |
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158 | (7) |
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Citizen VC No-Action Letter |
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158 | (7) |
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3.10 Chart of Selected Securities Act Exemptions |
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165 | (2) |
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3.11 The Burden of Proof File, SEC No-Action Letters, and Rescission Offers |
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167 | (2) |
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167 | (1) |
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167 | (2) |
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169 | (1) |
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3.12 The Federal Crowdfunding Exemption |
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169 | (4) |
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A Statutory Exemption and SEC Rules - Overview |
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170 | (1) |
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B SEC Regulation Crowdfunding |
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171 | (2) |
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Final Rules Implementing Regulation Crowdfunding |
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171 | (2) |
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173 | (1) |
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3.13 Intrastate Offerings - Section 3(a)(11), Rule 147, and Rule 147A |
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173 | (14) |
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Exemptions to Facilitate Intrastate and Regional Securities Offerings |
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175 | (11) |
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186 | (1) |
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3.14 Recapitalizations and Reorganizations - The 3(a)(9) and 3(a)(10) Exemptions |
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187 | (2) |
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3.15 Integration of Offerings |
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189 | (4) |
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3.16 State "Blue Sky" Law Exemptions |
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193 | (3) |
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3.17 Regulation S - Offshore Offerings |
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196 | (9) |
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203 | (1) |
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203 | (2) |
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Appendix Limited Offering Materials |
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205 | (16) |
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Purchaser Suitability Questionnaire |
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205 | (8) |
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213 | (5) |
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Purchaser Representative Questionnaire |
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218 | (3) |
| Chapter 4 The Registration Process |
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221 | (36) |
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4.01 Overview of the Registration Process |
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221 | (2) |
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4.02 Framework of Section 5 |
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223 | (22) |
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223 | (3) |
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226 | (8) |
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226 | (1) |
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2 Conditioning the Market ("Gun-Jumping") |
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226 | (3) |
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3 Rules 163 and 163A and Emerging Growth Companies |
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229 | (1) |
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230 | (1) |
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5 Transactions Between Market Professionals |
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231 | (1) |
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6 Rules 137, 138, and 139 and Emerging Growth Companies |
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232 | (2) |
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234 | (8) |
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234 | (1) |
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2 Free Writing Prospectus |
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235 | (3) |
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3 Confidential SEC Review of IPO Registration Statements Filed by Emerging Growth Companies |
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238 | (1) |
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238 | (1) |
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5 The Rule 134 Public Notice |
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239 | (1) |
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240 | (1) |
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7 SEC's Power of Acceleration |
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241 | (1) |
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D The Post-Effective Period |
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242 | (1) |
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242 | (1) |
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242 | (1) |
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243 | (2) |
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245 | (3) |
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245 | (2) |
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247 | (1) |
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4.04 The Materially False and Misleading Prospectus |
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248 | (1) |
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4.05 The Decision to "Go Public" - Pros and Cons |
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249 | (2) |
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4.06 The Registered Offering - A Look at the Process |
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251 | (3) |
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253 | (1) |
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4.07 State Blue Sky Law - Is There Merit to Merit Regulation? |
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254 | (3) |
| Chapter 5 Disclosure, Materiality, and the Sarbanes-Oxley and Dodd-Frank Acts |
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257 | (86) |
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5.01 The Integrated Disclosure Framework |
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257 | (16) |
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257 | (1) |
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B Framework and Rationale |
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258 | (6) |
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Proposed Comprehensive Revision to System for Regulation of Securities Offerings |
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258 | (4) |
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Amendments to Annual Report Form; Integration of Securities Acts Disclosure Systems |
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262 | (2) |
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C Securities Act Registration Forms |
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264 | (3) |
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264 | (2) |
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266 | (1) |
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267 | (1) |
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D Ways that a Company Becomes Subject to the Exchange Act's Reporting Requirements |
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267 | (2) |
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E Reduced Disclosure Requirements for Certain Issuers |
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269 | (2) |
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1 Emerging Growth Companies |
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269 | (1) |
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2 Smaller Reporting Companies |
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270 | (7) |
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271 | (1) |
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271 | (2) |
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5.02 Plain English Disclosure Requirements |
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273 | (2) |
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5.03 Concepts of Disclosure |
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275 | (44) |
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A The Mandatory Disclosure Debate |
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275 | (2) |
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B Disclosure of "Forward-Looking" Information |
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277 | (11) |
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1 Adoption of SEC Rule 175 |
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278 | (1) |
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2 Management Discussion and Analysis ("MD&A") |
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279 | (9) |
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280 | (3) |
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Panther Partners Inc. v. Ikanos Communications, Inc. |
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283 | (4) |
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287 | (1) |
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C Private Securities Litigation Reform Act |
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288 | (1) |
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D The Concept of Materiality |
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288 | (22) |
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Matrixx Initiatives, Inc. v. Siracusano |
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288 | (9) |
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1 Qualitative Materiality-Disclosure Relating to "Integrity" or "Competency" |
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297 | (6) |
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298 | (2) |
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Note - Qualitative Materiality and the SEC's Proxy Disclosure Enhancements |
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300 | (3) |
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2 Qualitative Economic Materiality |
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303 | (7) |
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Ganino v. Citizens Utilities Company |
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303 | (7) |
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E Environmental Disclosure |
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310 | (9) |
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Commission Guidance Regarding Disclosure Related to Climate Change |
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310 | (8) |
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318 | (1) |
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5.04 The Sarbanes-Oxley Act ("SOX") and Its Implementation |
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319 | (20) |
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319 | (1) |
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320 | (1) |
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321 | (15) |
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1 CEO and CFO Certifications |
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321 | (2) |
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323 | (2) |
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a Audit Committee Independence |
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324 | (1) |
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b Audit Committee Financial Expert |
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325 | (1) |
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3 Improper Influence on Audits |
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325 | (1) |
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4 Forfeiture of Bonuses and Profits |
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326 | (1) |
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5 Officer and Director Bars |
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326 | (1) |
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6 Insider Trading During Blackout Periods |
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327 | (1) |
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7 Disclosure of Off-Balance Sheet Transactions |
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327 | (1) |
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8 Prohibition of Loans to Directors and Executive Officers |
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328 | (1) |
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9 Reporting of Insider Transactions |
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328 | (1) |
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10 Management and Auditor Assessment of Internal Controls |
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328 | (1) |
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11 Senior Financial Officer Code of Ethics |
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329 | (1) |
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329 | (1) |
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13 Accounting Oversight Board |
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330 | (1) |
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331 | (1) |
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331 | (1) |
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b Audit Committee Pre-Approval of Permitted Non-Audit Services |
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331 | (1) |
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331 | (1) |
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d Report to the Audit Committee |
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332 | (1) |
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332 | (1) |
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15 Attorney Professional Responsibility |
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332 | (1) |
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16 Financial Analysts' Conflicts of Interest |
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333 | (1) |
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17 Remedies and Criminal Penalties |
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333 | (3) |
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333 | (1) |
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b Whistleblower Civil Remedy |
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333 | (1) |
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c Insider Trading During Blackouts - Disgorgement of Profits |
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334 | (1) |
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d No Discharge of Securities Fraud Debts in Bankruptcy |
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334 | (1) |
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e Court Order Freezing Certain Extraordinary Payments |
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335 | (1) |
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335 | (1) |
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335 | (1) |
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336 | (1) |
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C CEO and CFO Certifications |
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336 | (3) |
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Certification of Disclosure in Companies' Quarterly and Annual Reports |
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336 | (3) |
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5.05 The Dodd-Frank Act - Corporate Governance |
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339 | (4) |
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339 | (1) |
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340 | (3) |
| Chapter 6 Resales and Reorganizations |
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343 | (62) |
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343 | (1) |
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343 | (1) |
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344 | (1) |
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344 | (1) |
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6.02 The Concept of Underwriter |
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344 | (13) |
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A The Presumptive Underwriter Doctrine |
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346 | (1) |
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B Purchasing from an Issuer with a View Toward Distribution |
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347 | (5) |
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United States v. Sherwood |
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348 | (1) |
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The Holding Period, Change in Circumstances Defense, and Sales By Pledgees |
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349 | (3) |
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C Participating in the Underwriting Effort |
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352 | (5) |
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Securities and Exchange Commission v. Chinese Consolidated Benevolent Association |
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353 | (2) |
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355 | (2) |
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6.03 Distributions by Controlling Persons or Affiliates |
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357 | (10) |
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A The Meaning of "Control" |
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357 | (4) |
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Pennaluna & Company v. Securities and Exchange Commission |
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358 | (3) |
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361 | (1) |
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B Contractual Agreements to Sell |
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361 | (2) |
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1 Provision of Rule 15c2-11 Information |
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362 | (1) |
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2 Letter from Issuer's Counsel |
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363 | (1) |
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363 | (1) |
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363 | (1) |
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D Effecting a Distribution |
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364 | (1) |
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E Broker-Dealer Reasonable Inquiry |
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365 | (2) |
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367 | (18) |
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367 | (2) |
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369 | (16) |
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372 | (10) |
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382 | (3) |
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6.05 The Section "4(11/2)" Exemption |
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385 | (5) |
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386 | (3) |
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389 | (1) |
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6.06 The Section 4(a)(7) Exemption |
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390 | (3) |
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393 | (6) |
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393 | (2) |
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395 | (1) |
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395 | (2) |
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397 | (2) |
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6.08 Corporate Reorganizations |
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399 | (6) |
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399 | (1) |
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B Rule 145 - Ramifications |
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399 | (1) |
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400 | (2) |
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402 | (1) |
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403 | (3) |
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Business Combination Transactions - Adoption of Registration Form |
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403 | (2) |
| Chapter 7 Due Diligence and Securities Act Liability |
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405 | (116) |
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405 | (1) |
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7.02 The Registered Offering - Framework of Section 11 |
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406 | (29) |
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A Persons Subject to Section 11 Liability |
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406 | (1) |
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B Elements of the Section 11 Right of Action |
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407 | (15) |
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Hertzberg v. Dignity Partners, Inc. |
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409 | (3) |
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Note 411 Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund |
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412 | (9) |
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Note -In re Sanofi Securities Litigation |
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421 | (1) |
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422 | (1) |
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423 | (1) |
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424 | (1) |
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F Materiality and Damages |
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424 | (5) |
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Akerman v. Oryx Communications, Inc. |
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425 | (4) |
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G Contribution and Indemnification |
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429 | (6) |
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430 | (2) |
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432 | (1) |
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433 | (1) |
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434 | (1) |
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7.03 Due Diligence in the Registered Offering Context |
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435 | (21) |
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Escott v. BarChris Construction Corporation |
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435 | (21) |
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7.04 Analysis of Due Diligence in View of BarChris |
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456 | (15) |
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In re Software Toolworks Inc. Securities Litigation |
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464 | (7) |
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7.05 Impact of the Integrated Disclosure System |
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471 | (15) |
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Circumstances Affecting the Determination of What Constitutes Reasonable Investigation and Reasonable Grounds for Belief under Section 11 of the Securities Act |
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472 | (6) |
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In re Worldcom, Inc. Securities Litigation |
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478 | (5) |
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Note - Appointment of Underwriters' Counsel and Director Signature on Form 10-K |
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483 | (3) |
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7.06 Section 12(a)(1) of the Securities Act |
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486 | (1) |
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7.07 Section 12(a)(2) of the Securities Act |
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486 | (28) |
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A The Meaning of "Seller" and the "In Pari Delicto" Defense |
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490 | (12) |
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490 | (11) |
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501 | (1) |
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B Limited to "Public" Offerings |
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502 | (9) |
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Gustafson v. Alloyd Company |
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502 | (8) |
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510 | (1) |
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C The Reasonable Care Defense |
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511 | (2) |
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D Indemnification and Contribution |
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513 | (1) |
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E Affirmative Defense of Section 12(b) |
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514 | (1) |
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7.08 Section 4A(c) - The "Crowdfunding" Remedy |
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514 | (2) |
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7.09 Availability of State Securities Law Remedies |
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516 | (1) |
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Appendix Due Diligence Checklist (Public Offering) |
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517 | (4) |
| Chapter 8 Section 10(b) and Related Issues |
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521 | (168) |
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521 | (4) |
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524 | (1) |
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8.02 Standing: The Purchaser-Seller Requirement |
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525 | (15) |
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Blue Chip Stamps v. Manor Drug Stores |
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525 | (10) |
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535 | (1) |
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The Wharf (Holdings) Limited v. United International Holdings, Inc. |
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536 | (4) |
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8.03 Requisite Culpability Level |
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540 | (8) |
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A Private Damages Actions |
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540 | (6) |
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Ernst & Ernst v. Hochfelder |
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540 | (6) |
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546 | (1) |
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B SEC Actions for Injunctive Relief |
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546 | (1) |
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547 | (1) |
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548 | (1) |
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8.04 The "Deception" or "Manipulation" Requirement |
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548 | (8) |
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A Rejection of a Federal Fiduciary Approach |
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548 | (6) |
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Santa Fe Industries, Inc. v. Green |
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548 | (5) |
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553 | (1) |
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B Federal Disclosure Requirements Based on State Law Claims |
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554 | (1) |
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Virginia Bankshares, Inc. v. Sandberg |
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554 | (1) |
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554 | (1) |
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555 | (1) |
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8.05 Causation and Related Requirements |
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556 | (67) |
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556 | (3) |
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B The "In Connection With" Requirement |
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559 | (5) |
|
Securities and Exchange Commission v. Zandford |
|
|
559 | (5) |
|
|
|
564 | (12) |
|
|
|
565 | (3) |
|
Brown v. E.F. Hutton Group, Inc. |
|
|
568 | (5) |
|
|
|
573 | (3) |
|
D The "Bespeaks Caution" and Related Doctrines |
|
|
576 | (14) |
|
The Private Securities Litigation Reform Act - Safe Harbor for Certain Forward-Looking Statements |
|
|
577 | (1) |
|
A Statutory Safe Harbor for Forward-Looking Statements |
|
|
578 | (4) |
|
Asher v. Baxter International, Inc. |
|
|
582 | (6) |
|
|
|
588 | (2) |
|
E "Fraud on the Market" Theory |
|
|
590 | (26) |
|
|
|
590 | (8) |
|
Note - Halliburton I and Amgen |
|
|
598 | (2) |
|
Halliburton Co. v. Erica P. John Fund, Inc. |
|
|
600 | (13) |
|
1 Characteristics of an Efficient Market |
|
|
613 | (1) |
|
2 The "Fraud to Enter the Market" Theory |
|
|
614 | (2) |
|
|
|
616 | (6) |
|
Dura Pharmaceuticals, Inc. v. Broudo |
|
|
616 | (5) |
|
Note - Freddie Mac (6th Cir. 2016) |
|
|
621 | (1) |
|
|
|
622 | (1) |
|
|
|
623 | (1) |
|
Matrixx Initiatives, Inc. v. Siracusano |
|
|
623 | (1) |
|
Ganino v. Citizens Utilities Company |
|
|
623 | (1) |
|
|
|
623 | (2) |
|
|
|
625 | (1) |
|
8.09 Defenses and Strategic Considerations |
|
|
626 | (26) |
|
A Pleading Fraud with Particularity |
|
|
627 | (8) |
|
Tellabs, Inc. v. Makor Issues & Rights, Ltd. |
|
|
627 | (7) |
|
Note - Group Pleading and Collective Scienter |
|
|
634 | (1) |
|
|
|
635 | (12) |
|
Merck & Co., Inc. v. Reynolds |
|
|
636 | (9) |
|
|
|
645 | (2) |
|
C Defense of In Pari Delicto |
|
|
647 | (5) |
|
Bateman Eichler, Hill Richards, Inc. v. Berner |
|
|
647 | (5) |
|
|
|
652 | (1) |
|
8.10 Contribution, Proportionate Liability, and Related Issues |
|
|
652 | (2) |
|
|
|
652 | (1) |
|
B Contribution, Proportionate Liability and Related Issues Under the Private Securities Litigation Reform Act of 1995 |
|
|
653 | (1) |
|
8.11 Class Action "Reform" |
|
|
654 | (11) |
|
Private Securities Litigation Reform Act Joint Explanatory Statement of the Committee of Conference (1995) |
|
|
654 | (9) |
|
Presidential Veto Message on the Private Securities Litigation Reform Act |
|
|
663 | (2) |
|
8.12 Extraterritorial Reach of Section 10(b) |
|
|
665 | (18) |
|
Morrison v. National Australia Bank Ltd. |
|
|
665 | (13) |
|
SEC Extraterritorial Reach |
|
|
678 | (1) |
|
Absolute Activist Value Master Fund Limited v. Ficeto |
|
|
678 | (2) |
|
|
|
680 | (1) |
|
City of Pontiac Policemen's and Firemen's Retirement System v. UBS AG |
|
|
681 | (2) |
|
8.13 Special Concepts of Fraud for Broker-Dealers |
|
|
683 | (6) |
|
Pross v. Baird Patrick & Co., Inc. |
|
|
684 | (2) |
|
|
|
686 | (3) |
| Chapter 9 Alternative Provisions |
|
689 | (100) |
|
|
|
689 | (1) |
|
|
|
689 | (1) |
|
9.02 Implied Rights of Action - In General |
|
|
689 | (4) |
|
9.03 Section 17(a) of the Securities Act |
|
|
693 | (14) |
|
|
|
694 | (5) |
|
United States v. Naftalin |
|
|
694 | (4) |
|
|
|
698 | (1) |
|
|
|
699 | (1) |
|
C Rejection of an Implied Right of Action |
|
|
700 | (7) |
|
Landry v. All American Assurance Co. |
|
|
700 | (6) |
|
|
|
706 | (1) |
|
9.04 Section 14(a) of the Securities Exchange Act (The Proxy Statute) |
|
|
707 | (26) |
|
|
|
707 | (3) |
|
B "True Purpose" and Causation |
|
|
710 | (10) |
|
Virginia Bankshares, Inc. v. Sandberg |
|
|
710 | (9) |
|
|
|
719 | (1) |
|
C SEC Proxy Rule Amendments |
|
|
720 | (4) |
|
Regulation of Communications Among Shareholders |
|
|
721 | (2) |
|
|
|
723 | (1) |
|
D The Shareholder Proposal Rule |
|
|
724 | (1) |
|
|
|
724 | (1) |
|
E Shareholder Nomination of Directors - Rule 14a-11 |
|
|
725 | (9) |
|
Business Roundtable v. SEC |
|
|
725 | (7) |
|
|
|
732 | (1) |
|
9.05 Section 18 of the Securities Exchange Act |
|
|
733 | (1) |
|
9.06 Section 29(b) of the Securities Exchange Act |
|
|
734 | (6) |
|
Regional Properties, Inc. v. Financial and Real Estate Consulting Company |
|
|
736 | (4) |
|
9.07 Racketeer Influenced and Corrupt Organizations Act (RICO) |
|
|
740 | (1) |
|
The 1995 Federal Legislation (PSLRA) |
|
|
740 | (1) |
|
9.08 State Securities and Common Law Remedies |
|
|
741 | (48) |
|
The Securities Litigation Uniform Standards Act of 1998 |
|
|
741 | (2) |
|
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Dabit |
|
|
743 | (7) |
|
Chadbourne & Parke LLP v. Troice |
|
|
750 | (9) |
|
Note - Why Bring State Claims? |
|
|
759 | (4) |
|
Anheuser-Busch Companies, Inc. v. Summit Coffee Co. |
|
|
763 | (2) |
|
Sterling Trust Co. v. Adderley |
|
|
765 | (7) |
|
|
|
772 | (4) |
|
|
|
776 | (6) |
|
|
|
782 | (7) |
| Chapter 10 Secondary Liability |
|
789 | (58) |
|
|
|
789 | (1) |
|
|
|
789 | (1) |
|
10.02 Aiding and Abetting Liability |
|
|
790 | (19) |
|
Central Bank of Denver v. First Interstate Bank of Denver |
|
|
790 | (14) |
|
|
|
804 | (1) |
|
Securities and Exchange Commission v. Apuzzo |
|
|
805 | (4) |
|
10.03 Distinguishing Primary from Secondary Conduct |
|
|
809 | (24) |
|
A Rejection of a Broad "Scheme to Defraud" Theory |
|
|
809 | (10) |
|
Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc. |
|
|
809 | (10) |
|
B Rule 10b-5(b) - "Makers" of Statements |
|
|
819 | (14) |
|
Janus Capital Group, Inc. v. First Derivative Traders |
|
|
819 | (11) |
|
Note-Impact of Janus Capital |
|
|
830 | (3) |
|
10.04 Controlling Person Liability |
|
|
833 | (7) |
|
Haynes v. Anderson & Strudwick, Inc. |
|
|
834 | (3) |
|
|
|
837 | (3) |
|
10.05 Respondeat Superior Liability |
|
|
840 | (6) |
|
|
|
843 | (3) |
|
|
|
846 | (1) |
|
10.06 Failure to Supervise |
|
|
846 | (1) |
|
In the Matter of Gutfreund, Strauss, and Meriwether |
|
|
846 | (1) |
| Chapter 11 Issuer Affirmative Disclosure Obligations |
|
847 | (60) |
|
|
|
847 | (6) |
|
|
|
851 | (1) |
|
|
|
852 | (1) |
|
11.02 Real-Time Disclosure |
|
|
853 | (5) |
|
|
|
856 | (2) |
|
11.03 Impact of the "MD&A" Requirements |
|
|
858 | (6) |
|
|
|
858 | (1) |
|
In the Matter of Caterpillar, Inc. |
|
|
858 | (4) |
|
|
|
862 | (2) |
|
11.04 Duty to Disclose Forward-Looking or "Soft" Information |
|
|
864 | (15) |
|
A The Private Securities Litigation Reform Act |
|
|
864 | (1) |
|
B Safe Harbor for Projections - Rule 175 |
|
|
864 | (2) |
|
Safe Harbor for Projections |
|
|
864 | (2) |
|
C "Puffing," "Attribution," and Statements of "Fact" |
|
|
866 | (5) |
|
Raab v. General Physics Corporation |
|
|
866 | (5) |
|
|
|
871 | (1) |
|
D Mandatory Disclosure of "Soft" Information |
|
|
871 | (9) |
|
Starkman v. Marathon Oil Co. |
|
|
871 | (5) |
|
|
|
876 | (3) |
|
|
|
879 | (1) |
|
11.06 Responding to Rumors |
|
|
880 | (5) |
|
State Teachers Retirement Board v. Fluor Corp. |
|
|
881 | (2) |
|
|
|
883 | (2) |
|
11.07 Duty to Disclose Negotiations |
|
|
885 | (8) |
|
|
|
885 | (6) |
|
|
|
891 | (2) |
|
|
|
893 | (14) |
|
|
|
899 | (1) |
|
|
|
900 | (7) |
| Chapter 12 Insider Trading |
|
907 | (82) |
|
|
|
907 | (9) |
|
|
|
907 | (3) |
|
B The Meaning of "Material" and "Nonpublic" Information |
|
|
910 | (6) |
|
|
|
913 | (3) |
|
|
|
916 | (1) |
|
|
|
916 | (1) |
|
|
|
917 | (1) |
|
|
|
917 | (1) |
|
|
|
917 | (5) |
|
United States v. Blackwell |
|
|
918 | (2) |
|
Securities and Exchange Commission v. Mazzo |
|
|
920 | (2) |
|
12.04 The Classical Theory |
|
|
922 | (7) |
|
Chiarella v. United States |
|
|
922 | (7) |
|
|
|
929 | (1) |
|
12.05 The "Misappropriation" Theory |
|
|
929 | (16) |
|
|
|
930 | (8) |
|
|
|
938 | (2) |
|
Securities and Exchange Commission v. Cuban |
|
|
940 | (5) |
|
12.06 Family and Other Personal Relationships - SEC Rule 10b5-2 |
|
|
945 | (1) |
|
12.07 "Possession" versus "Use" |
|
|
946 | (2) |
|
12.08 "Tipper-Tippee" Liability |
|
|
948 | (21) |
|
Dirks v. Securities and Exchange Commission |
|
|
948 | (8) |
|
|
|
956 | (1) |
|
Securities and Exchange Commission v. Switzer |
|
|
957 | (6) |
|
|
|
963 | (6) |
|
|
|
969 | (6) |
|
|
|
969 | (5) |
|
|
|
974 | (1) |
|
12.10 Damages and Penalties |
|
|
975 | (4) |
|
A Damages - Section 10(b) Actions |
|
|
975 | (2) |
|
|
|
977 | (1) |
|
C Contemporaneous and Option Traders |
|
|
978 | (1) |
|
|
|
979 | (2) |
|
12.12 Section 16 - "Short-Swing" Trading |
|
|
981 | (6) |
|
|
|
981 | (1) |
|
|
|
982 | (9) |
|
1 Beneficial Ownership and the Concept of Attribution |
|
|
983 | (1) |
|
2 Directors - "Deputization" |
|
|
984 | (1) |
|
|
|
984 | (1) |
|
4 Ten Percent Beneficial Owners |
|
|
985 | (1) |
|
5 Objective Approach versus Pragmatic Approach |
|
|
985 | (2) |
|
|
|
987 | (1) |
|
|
|
987 | (2) |
| Chapter 13 Financial Intermediaries-Broker-Dealers and Investment Advisers |
|
989 | (84) |
|
|
|
989 | (2) |
|
13.02 SEC Staff Study on Investment Advisers and Broker-Dealers |
|
|
991 | (4) |
|
Study on Investment Advisers and Broker-Dealers |
|
|
991 | (4) |
|
|
|
995 | (15) |
|
A Supreme Court Decisions |
|
|
995 | (10) |
|
Shearson/American Express, Inc. v. McMahon |
|
|
995 | (9) |
|
|
|
1004 | (1) |
|
B Aftermath of McMahon and Rodriguez |
|
|
1005 | (1) |
|
|
|
1006 | (2) |
|
|
|
1008 | (1) |
|
E Arbitration in the Registered Offering Context |
|
|
1009 | (1) |
|
13.04 The Shingle and Related Theories |
|
|
1010 | (17) |
|
Pross v. Baird, Patrick & Co., Inc. |
|
|
1010 | (1) |
|
Brown v. E.F. Hutton Group, Inc. |
|
|
1011 | (1) |
|
A Distinguishing "Puffery" from "Misrepresentation" |
|
|
1011 | (4) |
|
Cohen v. Prudential-Bache Securities, Inc. |
|
|
1011 | (4) |
|
|
|
1015 | (12) |
|
Gochnauer v. A.G. Edwards & Sons, Inc. |
|
|
1015 | (4) |
|
|
|
1019 | (1) |
|
De Kwiatkowski v. Bear, Stearns & Co., Inc. |
|
|
1020 | (7) |
|
|
|
1027 | (5) |
|
|
|
1027 | (4) |
|
|
|
1031 | (1) |
|
13.06 The "Dramshop" Cases |
|
|
1032 | (7) |
|
Puckett v. Rufenacht, Bromagen & Hertz, Inc. |
|
|
1032 | (7) |
|
|
|
1039 | (2) |
|
Hecht v. Harris, Upham & Co. |
|
|
1039 | (2) |
|
Bateman Eichler, Hill Richards, Inc. v. Berner |
|
|
1041 | (1) |
|
13.08 Investment Adviser Fees |
|
|
1041 | (10) |
|
Jones v. Harris Associates L.P. |
|
|
1041 | (10) |
|
13.09 Conflicts of Interest |
|
|
1051 | (7) |
|
|
|
1051 | (1) |
|
B The Need for Reinforcement Measures |
|
|
1052 | (1) |
|
C Regulatory Treatment of Chinese Walls |
|
|
1053 | (1) |
|
D SEC Global Research Analyst Settlements |
|
|
1054 | (1) |
|
E Sarbanes-Oxley Act Provisions |
|
|
1055 | (1) |
|
|
|
1056 | (2) |
|
13.10 Secondary Liability |
|
|
1058 | (12) |
|
|
|
1058 | (1) |
|
A Aiding and Abetting Liability |
|
|
1058 | (1) |
|
B Controlling Person Liability |
|
|
1058 | (1) |
|
Haynes v. Anderson & Strudwick, Inc. |
|
|
1058 | (1) |
|
Hollinger v. Titan Capital Corp. |
|
|
1059 | (1) |
|
Harrison v. Dean Witter Reynolds, Inc. |
|
|
1059 | (1) |
|
C Respondeat Superior Liability |
|
|
1059 | (1) |
|
Hollinger v. Titan Capital Corp. |
|
|
1059 | (1) |
|
|
|
1059 | (14) |
|
In the Matter of John H. Gutfreund, Thomas W. Strauss, and John W Meriwether |
|
|
1061 | (8) |
|
|
|
1069 | (1) |
|
13.11 Credit Rating Agencies |
|
|
1070 | (3) |
| Chapter 14 Corporate Control Acquisitions and Contests |
|
1073 | (82) |
|
|
|
1073 | (1) |
|
14.02 Going-Private Transactions |
|
|
1073 | (18) |
|
|
|
1074 | (1) |
|
|
|
1074 | (15) |
|
|
|
1074 | (13) |
|
|
|
1087 | (1) |
|
In re Dole Food Co., Inc. Stockholder Litigation |
|
|
1088 | (1) |
|
|
|
1089 | (2) |
|
Virginia Bankshares, Inc. v. Sandberg |
|
|
1089 | (1) |
|
SEC Rules 13e-3 and 13e-4 |
|
|
1090 | (1) |
|
|
|
1091 | (17) |
|
GAF Corporation v. Heyman |
|
|
1092 | (14) |
|
|
|
1106 | (1) |
|
Virginia Bankshares v. Sandberg |
|
|
1107 | (1) |
|
SEC Proxy Rule Amendments on Shareholder Communications |
|
|
1108 | (1) |
|
|
|
1108 | (1) |
|
|
|
1108 | (47) |
|
A What Is a Tender Offer? |
|
|
1108 | (10) |
|
Hanson Trust PLC v. SCM Corporation |
|
|
1108 | (9) |
|
|
|
1117 | (1) |
|
B Disclosure of Beneficial Ownership Interest |
|
|
1118 | (3) |
|
C Constitutional Dimensions of State Takeover Statutes |
|
|
1121 | (4) |
|
|
|
1125 | (1) |
|
|
|
1125 | (2) |
|
F Legitimacy of Defensive Tactics |
|
|
1127 | (28) |
|
|
|
1127 | (3) |
|
|
|
1130 | (6) |
|
Schreiber v. Burlington Northern, Inc. |
|
|
1131 | (4) |
|
|
|
1135 | (1) |
|
|
|
1136 | (45) |
|
Paramount Communications, Inc. v. Time, Inc. |
|
|
1136 | (15) |
|
"Poison Pills" and Other Defensive Tactics |
|
|
1151 | (4) |
| Chapter 15 Securities Law Enforcement |
|
1155 | (84) |
|
15.01 Introductory Materials |
|
|
1155 | (4) |
|
A SEC Order Directing a Private Investigation |
|
|
1156 | (2) |
|
|
|
1158 | (1) |
|
C A Look at Blue Sky Enforcement |
|
|
1159 | (1) |
|
15.02 Collateral Estoppel Ramifications |
|
|
1159 | (5) |
|
Parklane Hosiery Co., Inc. v. Shore |
|
|
1160 | (3) |
|
|
|
1163 | (1) |
|
15.03 Subpoena Enforcement |
|
|
1164 | (8) |
|
Securities and Exchange Commission v. Jerry T. O'Brien, Inc. |
|
|
1164 | (7) |
|
|
|
1171 | (1) |
|
|
|
1172 | (5) |
|
A Standards for Imposition |
|
|
1172 | (1) |
|
B Implications of Central Bank of Denver |
|
|
1173 | (1) |
|
C Collateral Consequences |
|
|
1174 | (1) |
|
|
|
1175 | (1) |
|
E Modification or Dissolution of SEC Injunctions |
|
|
1175 | (2) |
|
15.05 SEC Administrative Enforcement Remedies |
|
|
1177 | (13) |
|
A Cease and Desist Orders |
|
|
1178 | (1) |
|
|
|
1179 | (1) |
|
C Refusal and Stop Orders |
|
|
1179 | (1) |
|
D Summarily Suspending Trading in a Security |
|
|
1179 | (1) |
|
E Broker-Dealer Disciplinary Sanctions |
|
|
1180 | (1) |
|
F Section 15(c)(4) Disciplinary Proceedings |
|
|
1180 | (1) |
|
G Section 21(a) Reports of Investigation |
|
|
1181 | (9) |
|
In the Matter of Occidental Petroleum Corporation |
|
|
1182 | (8) |
|
15.06 Officer and Director Bars |
|
|
1190 | (1) |
|
|
|
1190 | (5) |
|
Statement of the Securities and Exchange Commission Concerning Financial Penalties |
|
|
1191 | (4) |
|
15.08 Sarbanes-Oxley Act and Dodd-Frank Act Enhanced Enforcement |
|
|
1195 | (2) |
|
|
|
1197 | (7) |
|
SEC v. Citigroup Global Markets, Inc. |
|
|
1197 | (7) |
|
15.10 Statutes of Limitations |
|
|
1204 | (6) |
|
|
|
1205 | (5) |
|
15.11 Attorney-Client Privilege |
|
|
1210 | (14) |
|
|
|
1210 | (7) |
|
In re: Kellogg Brown & Root, Inc. |
|
|
1210 | (5) |
|
|
|
1215 | (2) |
|
B "Limited" Waiver Concept |
|
|
1217 | (7) |
|
Permian Corp. v. United States |
|
|
1217 | (7) |
|
|
|
1224 | (1) |
|
15.12 Parallel Proceedings |
|
|
1224 | (11) |
|
Securities and Exchange Commission v. Dresser Industries, Inc. |
|
|
1224 | (8) |
|
|
|
1232 | (3) |
|
15.13 International Enforcement |
|
|
1235 | (4) |
|
SEC Statement on International Enforcement Assistance (2012) |
|
|
1235 | (4) |
| Chapter 16 The Role of Counsel |
|
1239 | (38) |
|
|
|
1239 | (3) |
|
A Sarbanes-Oxley and the SEC's Response |
|
|
1239 | (2) |
|
|
|
1241 | (1) |
|
16.02 Attorney Liability for Client Fraud |
|
|
1242 | (21) |
|
|
|
1243 | (1) |
|
SEC Adopts Attorney Conduct Rule Under Sarbanes-Oxley Act |
|
|
1243 | (2) |
|
In the Matter of Carter and Johnson |
|
|
1245 | (6) |
|
Securities and Exchange Commission v. Spiegel, Inc. |
|
|
1251 | (5) |
|
|
|
1256 | (1) |
|
A Duty to Disclose Client Fraud |
|
|
1256 | (1) |
|
B Attorney Malpractice and Negligent Misrepresentation |
|
|
1257 | (4) |
|
Cromeans v. Morgan Keegan & Co., Inc. |
|
|
1258 | (3) |
|
|
|
1261 | (1) |
|
In the Matter of Gutfreund, Strauss and Meriwether |
|
|
1261 | (1) |
|
D Responding to Auditor Requests |
|
|
1261 | (2) |
|
16.03 Predecessor-Successor Communications |
|
|
1263 | (5) |
|
In re OPM Leasing Services, Inc. |
|
|
1263 | (4) |
|
|
|
1267 | (1) |
|
|
|
1268 | (1) |
|
16.05 Attorney-Client Privilege |
|
|
1269 | (1) |
|
In re: Kellogg Brown & Root, Inc. |
|
|
1269 | (1) |
|
16.06 Conflicts of Interest |
|
|
1269 | (8) |
|
A Conflicts in SEC Proceedings |
|
|
1269 | (4) |
|
In the Matter of Blizzard and Abel |
|
|
1269 | (1) |
|
Matter of Merrill Lynch, Pierce, Fenner & Smith, Inc. |
|
|
1270 | (3) |
|
|
|
1273 | (4) |
| Index |
|
1277 | |
