Ninth Circuit Court of Appeals Addresses Scope of Primary Violation Liability Under Rule 10b-5(a) and (c)

On July 11, 2006, the New York office authored an Alert Memorandum entitled, “Ninth Circuit Court of Appeals Addresses Scope of Primary Violation Liability Under Rule 10b-5(a) and (c) .” This eight-page memo discusses the Ninth Circuit affirmation of the dismissal of claims against outside business partners in the Homestore.com litigation, staking out for the first time an appellate court decision on the scope of “scheme” liability under Rule 10b-5(a) and (c). The memorandum briefly summarizes the opinion and its significance.