The Court’s conclusion creates the expansive version of primary liability the SEC has sought for years. Perhaps ironically, the scheme liability theory the agency created in an effort to reach its goal was largely ignored by the Court. Rather, the opinion crafted by Justice Breyer is little more than a reiteration of Central Bank. There the Court rejected the conclusion of every court which had considered the question, by holding that Section 10(b) did not encompass aiding and abetting liability. The statute does reach any conduct which falls within the ambit of its expansive language – even that of a “bit” player, according to the Court.
‘Enforcement 40’ for 2020
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