Attorney Liability Under the State Securities Laws: Landscapes and Minefields

42 Pages Posted: 2 Feb 2018

See all articles by Marc I. Steinberg

Marc I. Steinberg

Southern Methodist University - Dedman School of Law

Chris Claassen

Southern Methodist University (SMU), Dedman School of Law, Alumnus

Date Written: 2005

Abstract

Attorneys face significant liability exposure under the state securities laws, and they can be held primarily liable when they are "sellers" of securities, or under some state statutes, like California, when they are experts. Depending on the applicable jurisdiction and counsel's status relative to the subject client, secondary liability may be incurred. In a number of states, counsel has liability exposure based on materially aiding the primary violator with the requisite intent.

This article surveys and analyzes attorney liability under state securities law. After presenting a succinct overview of applicable state law in Part II, the article then provides a more in-depth analysis of attorney liability exposure under these state statutes in Part IIl. The article concludes in Part IV with separate treatment of two frequently invoked state statutes-those of California and Texas.

Keywords: Attorney liability, state securities law, Securities Litigation Uniform Standards Act, SLUSA, primary liability, secondary liability, Uniform Securities Acts, USA

Suggested Citation

Steinberg, Marc I. and Claassen, Christopher I., Attorney Liability Under the State Securities Laws: Landscapes and Minefields (2005). Berkeley Business Law Journal, Vol. 3, No. 1, 2005; SMU Dedman School of Law Legal Studies Research Paper No. 379. Available at SSRN: https://ssrn.com/abstract=3116429

Marc I. Steinberg (Contact Author)

Southern Methodist University - Dedman School of Law ( email )

P.O. Box 750116
Dallas, TX 75275
United States

Christopher I. Claassen

Southern Methodist University (SMU), Dedman School of Law, Alumnus

TX
United States

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