The Make Believe of Janus - A Brief Case Comment Examining Janus Capital Group, Inc. v. First Derivative Traders

New York State Bar Assoc. Securities Litigation and Arbitration, Forthcoming

12 Pages Posted: 13 Oct 2011 Last revised: 11 Apr 2012

Edward Pekarek

Pace Law School

Genavieve Shingle

Pace Law School

Date Written: October 12, 2011

Abstract

Rule 10b-5 prohibits 'making any untrue statement of a material fact' in connection with the purchase or sale of securities. The critical question considered by the Janus Court was how the term 'make' in Rule 10b-5 should be construed. The SEC contended that 'make' is synonymous with 'create,' which would allow it (and private plaintiffs) to assert a claim against one who provides false or misleading material information to another, who later includes it in a statement. However, the Court rejected this definition and found the phrase at issue in Rule 10b-5, 'to make . . . any statement,' to be the approximate equivalent of 'to state.'

Keywords: SEC, 10b-5, Janus, Supreme Court, speech, first amendment, libel, Lanham Act, Dodd-Frank, false advertising, securities, DMCA 512, CDA 230, Pekarek

Suggested Citation

Pekarek, Edward and Shingle, Genavieve, The Make Believe of Janus - A Brief Case Comment Examining Janus Capital Group, Inc. v. First Derivative Traders (October 12, 2011). New York State Bar Assoc. Securities Litigation and Arbitration, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1942748 or http://dx.doi.org/10.2139/ssrn.1942748

Edward Pekarek (Contact Author)

Pace Law School ( email )

80 North Broadway
White Plains, NY 10603
United States

HOME PAGE: http://www.pace.edu/page.cfm?doc_id=31582

Genavieve Shingle

Pace Law School ( email )

78 North Broadway
White Plains, NY 10603
United States

Paper statistics

Downloads
58
Rank
304,579
Abstract Views
509