Tuesday, January 24, 2006

Attorneys as Defendants in Securities Class Actions?

From Lyle Roberts at The 10b-5 Daily: "Although the Supreme Court's prohibition on aiding and abetting liability in private securities fraud actions has generally shielded law firms, in some cases courts have found that the law firms acted as primary violators. Plaintiffs have added fuel to that fire by arguing that even if a law firm did not make (or substantially participate in) a misrepresentation to the market, it can be held liable as a primary participant in a fraudulent scheme. "
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