S.E.C. v. TAMBONE

No. 07-1384.

597 F.3d 436 (2010)

SECURITIES AND EXCHANGE COMMISSION, Plaintiff, Appellant, v. James TAMBONE and Robert Hussey, Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided March 10, 2010.


Attorney(s) appearing for the Case

John W. Avery, Senior Litigation Counsel, with whom David M. Becker, General Counsel, Mark D. Cahn, Deputy General Counsel, and Jacob H. Stillman, Solicitor, were on supplemental brief, for appellant.

Arthur R. Miller, William B. Scoville, Jr., Peter G.A. Safirstein, Milberg LLP, New York City, Kevin P. Roddy, Wilentz, Goldman & Spitzer, P.A., Woodbridge, NJ, Salvatore J. Graziano, Ann M. Lipton, and Bernstein Litowitz Berger & Grossmann LLP, New York City, on supplemental brief for National Association of Shareholder and Consumer Attorneys (NASCAT), amicus curiae.

Paula J. DeGiacomo, with whom Elliot H. Scherker, Greenberg Traurig LLP, A. John Pappalardo, John A. Sten, and Greenberg Traurig, P.A., Boston, MA, were on supplemental brief, for appellee Tambone.

Clifford M. Sloan, with whom Christopher M. Joralemon, Gibson, Dunn & Crutcher LLP, New York City, Warren L. Feldman, Skadden, Arps, Slate, Meagher & Flom LLP, New York City, Frank A. Libby, Jr., John J. Commisso, and Libby-Hoopes, P.C., Boston, MA, were on supplemental brief, for appellee Hussey.

Douglas R. Cox, Michael J. Scanlon, Jason J. Mendro, Gibson, Dunn & Crutcher LLP, Washington, DC, on supplemental brief for Center for Audit Quality, amicus curiae.

Carter G. Phillips, Jonathan F. Cohn, Daniel A. McLaughlin, Eric D. McArthur, Sidley Austin LLP, Washington, DC, Ira D. Hammerman, Kevin M. Carroll, on supplemental brief for Securities Industry and Financial Markets Association, amicus curiae.

Richard D. Bernstein, Barry P. Barbash, Frank M. Scaduto, Willkie Farr & Gallagher LLP, Robin S. Conrad, and Amar D. Sarwal, Washington, DC, on supplemental brief for United States Chamber of Commerce, amicus curiae.

John Pagliaro, Staff Attorney, and Martin J. Newhouse, Boston, MA, on supplemental brief for New England Legal Foundation and Associated Industries of Massachusetts, amici curiae.


OPINION EN BANC

SELYA, Circuit Judge.

Rule 10b-5(b), promulgated by the Securities and Exchange Commission (SEC) under the aegis of section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), renders it unlawful "[t]o make any untrue statement of a material fact ... in connection with the purchase or sale of any security." 17 C.F.R. § 240.10b-5(b). The issue before us is one of first impression. It turns on the meaning of the word "make" as...

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