Split High Court: Investment Banker Can Be Held Liable For Misstatements

Mealey's (March 27, 2019, 12:43 PM EDT) -- WASHINGTON, D.C. — In a 6-2 decision, the U.S. Supreme Court on March 27 ruled that an investment banker can be held liable under parts of Securities and Exchange Commission Rule 10b-5(a) and (c), as well as related provisions of the federal securities laws, for false or misleading statements made in an email he sent to investors on behalf of his boss, even though the deceptive statements were made by the boss and not the banker himself (Francis V. Lorenzo v. Securities and Exchange Commission, No. 17-1077, U.S. Sup., 2019 U.S. LEXIS 2295)....