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 |
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 10b–5, 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.
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
- Opinion analysis: Who “makes†statements under the federal securities laws?
- This week at the Court: In Plain English
- Argument recap: Justices grapple with the distinction between primary and secondary liability and what it means to “make†a statement under the federal securities laws
- Argument preview: May a party face primary liability under the federal securities laws for alleged misstatements attributed to another party?
Briefs and Documents
Merits Briefs
- Brief for Petitioner Janus Capital Group
- Brief for Respondent First Derivative Traders
- Reply Brief for Petitioner Janus Capital Group
Amicus Briefs
- Brief for the Securities Industries and Financial Markets Association in Support of Petitioner
- Brief for the Center for Audit Quality in Support of Neither Party
- Brief for Attorneys' Liability Assurance Society, Inc., a Risk Retention Group in Support of Petitioner
- Brief for G. Eric Brunstad, Jr., Robert W. Helm, and Jane A. Kanter in Support of Petitioner
- Brief for the New York State Common Retirement Fund, New York City Employees' Retirement System, Board of Education Retirement System of the City of New York, New York Fire Department Pension Fund, New York City Police Pension Fund, and Teachers' Retirement System of the City of New York, in Support of Respondent
- Brief for the Council of Institutional Investors in Support of Respondent
- Brief for Employees’ Retirement System of Government of the Virgin Islands in Support of Respondent
- Brief for Law Professors William A. Birdthistle, Tamar Frankel, Lyman P.Q. Johnson, Donald C. Langevoort, and Manning G. Warren III in Support of Respondent
- Brief for John P. Freeman and James D. Cox in Support of Respondent
- Brief for AARP and the North American Securities Administrators Association, Inc., in Support of Respondent
- Brief for the United States of America in Support of Respondent
- Brief for the Chamber of Commerce in Support of Petitioner
Certiorari-Stage Documents
- Opinion below (4th Circuit)
- Petition for Certiorari (unavailable)
- Respondent’s brief (unavailable)
- Petitioners’ reply (unavailable)
- Amicus brief of the United States (deny)
- Supplemental brief for petitioners (unavailable)
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