On March 1, the U.S. District Court for the Middle District of Florida dismissed a claim against Robert A. DiGiorgio, CEO of Radius Capital Group, under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, concerning allegedly false statements made in an RMBS prospectus. The court applied the rule articulated by the Supreme Court in Janus Capital Group., Inc. v. First Derivative Traders, 131 S. Ct. 2296 (2011), that the maker of a false statement for purposes of Rule 10b-5 is the person with "ultimate authority over the statement." The Court concluded that the complaint failed to plead adequately that defendant was the maker of the statements of issue, but granted leave to amend. Decision.
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Federal court applies Janus in dismissing federal securities fraud claim in SEC action
- Orrick Herrington & Sutcliffe LLP
- March 26 2012
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