Firm Memoranda

Janus Inapplicable to Criminal Cases — Non-“Makers” of Statements Can Still be Criminally Liable for Violations of SEC Rule 10b-5

Date: 05/09/14

On May 7, 2014, in Prousalis v. Moore, the Fourth Circuit held that the willful creation of a materially false statement of fact, intended to be disseminated in connection with the sale or purchase of a security, can be a criminal violation of SEC Rule 10b-5 even if the creator of the statement was not the one who disseminated it, holding that the Supreme Court’s decision in Janus Capital v. First Derivative Traders did not apply to criminal cases.

CGR Memo - Janus Inapplicable to Criminal Cases Non-'Makers' of Statements Can Still be Criminally Liable for Violations of SEC Rule 10b-5.pdf (pdf | 126.33 KB )