Lorenzo v. SEC: the supreme court rules on scheme liability under the federal securities laws

Abstract

PurposeTo analyze the impact of the Supreme Court’s decision in Lorenzo v. SEC.Design/methodology/approachDiscusses the lead up to the decision, the arguments made by both sides, and the opinion of the Court, and makes predictions about the likely impact of the decision.FindingsThe holding is unlikely to have a significant impact on private securities litigation as shareholders, unlike the SEC, are required to prove reliance and, under the Lorenzo fact pattern, reliance cannot be shown.Originality/valueExpert analysis and guidance from experienced securities litigation counsel.