Editor's Note :

Editor's Note :

We expect orders from the March 24 conference on Monday at 9:30 a.m. There is a possibility of opinions on Tuesday, March 28 and Wednesday, March 29.
On Monday the court hears oral argument in Advocate Health Care Network v. Stapleton. Ronald Mann has our preview.
On Monday the court also hears oral argument in TC Heartland LLC v. Kraft Foods Group Brands LLC. Ronald Mann has our preview.

Janus Capital Group, Inc. v. First Derivative Traders

Docket No. Op. Below Argument Opinion Vote Author Term
09-525 4th Cir. Dec 7, 2010
Tr.Aud.
Jun 13, 2011 5-4 Thomas OT 2010
 
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Holding: Because the petitioner, a mutual fund investment adviser, did not make the false statements included in the mutual fund prospectuses of its clients, it cannot be held liable in a private action under SEC Rule 10b5, which prohibits mak[ing] any untrue statement of fact in connection with the purchase or sale of securities, for its role in preparing those prospectuses.

Plain English Holding: Investment advisors to a mutual fund cannot be sued under federal securities law for false statements made by the fund they advised.

Plain English Summary:

Judgment: Reversed, 5-4, in an opinion by Justice Clarence Thomas on June 13, 2011. Justice Breyer filed a dissenting opinion, which Justices Ginsburg, Sotomayor, and Kagan joined.

SCOTUSblog Coverage

CVSG Information

Invited: January 11, 2010

Filed: May 19, 2010 (Deny)

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