Janus Applied

The Janus opinion, which holds that primary liability for securities fraud is limited to the person or entity with ultimate authority over the alleged false statements, has had its first impact. Earlier this week, the U.S. Supreme Court denied cert in a case alleging that a law firm and one of its former partners were liable for false statements made by Refco in its public filings. The Second Circuit had dismissed the claims, finding that under its “bright line” test the attorneys could not be liable because they were not identified to investors as the makers of the statements. In the wake of Janus, the Court left the Second Circuit’s decision undisturbed. Law360 has an article on the cert denial.

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