06/09/2009
Law Firm Not Liable for 10 B Violation Under Stoneridge
In re Refco Inc. Securities Litigation, ___ F.Supp.2d ___, 2009 WL 724378 (S.D.N.Y. 2009)

Brief Summary

Plaintiffs alleged a Securities Act § 10(b) violation against a law firm for allegedly helping draft an issuer’s misleading statements. The allegations were held insufficient because the investors, based solely on knowledge that the firm was issuer’s primary outside counsel, could not have reasonably understood the law firm to have made the statements.
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