Securities Regulation
Advanced
Scheme Liability
Primary securities-fraud liability based on employing a deceptive device, scheme, practice, or course of business rather than solely on being the legal maker of a false statement.
Why It Matters
Scheme liability determines whether actors who knowingly disseminate or operationalize deception can be reached when another person has ultimate authority over the underlying statement.
Selected Literature
A short list of directly relevant archive entries.
1984
Advanced
2000
Intermediate
The Economic Theory of Public Enforcement of Law
A. Mitchell Polinsky and Steven Shavell
Journal of Economic Literature
2009
Advanced
Public and Private Enforcement of Securities Laws: Resource-Based Evidence
Howell E. Jackson and Mark J. Roe
Journal of Financial Economics
Related Cases
2019
Securities Regulation
Lorenzo v. SEC
587 U.S. 71 (2019)
Primary scheme liability for knowingly disseminating false statements authored by another person.
1975
Securities Regulation
Blue Chip Stamps v. Manor Drug Stores
421 U.S. 723 (1975)
Standing to bring private Rule 10b-5 damages actions and the purchaser-seller limitation.
1977
Securities Regulation
Santa Fe Industries, Inc. v. Green
430 U.S. 462 (1977)
Whether unfairness in a freeze-out merger, without deception or manipulation, states a federal securities-fraud claim.
2002
Securities Regulation
SEC v. Zandford
535 U.S. 813 (2002)
Whether a broker's securities sales and misappropriation of the proceeds were fraud in connection with the sale of securities.