In an opinion filed April 27, the Second Circuit affirmed the dismissal by the Southern District of New York of securities liability charges in Pacific Management Co. v. Mayer Brown LLP, No. 09-1619-cv (2d Cir.). Rejecting the Securities and Exchange Commission’s (SEC) arguments for prosecution of an attorney and his firm on a heightened standard of “creator liability”, the 2nd Circuit panel instead hued to the current bright line rule espoused by the U.S. Supreme Court. This is a very positive outcome for counsel working with the securities industries.
ACC filed an amicus brief on September 16th in the Second Circuit urging the court to reject the Securities and Exchange Commission’s (SEC) arguments, arguing SEC’s promotion of a theory of lawyer liability, inconsistent with legal precedent and interpretation, would drastically expand liability for lawyers who provide legal services to issuers.
Read the decision and ACC’s brief:
Read more here.