Overview: Securities professionals could not be said to have
made a statement, such that liability under S.E.C. Rule 10b-5(b) attached,
either by (i) using statements to sell securities, regardless of whether those
statements were crafted entirely by others, or (ii) directing the offering and
sale of securities on behalf of an underwriter.
Counsel: 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, Kevin P. Roddy, Wilentz, Goldman & Spitzer, P.A., Salvatore J.
Graziano, Ann M. Lipton, and Bernstein Litowitz Berger & Grossmann LLP, 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. were on
supplemental brief, for appellee Tambone.
Clifford M. Sloan, with whom Christopher M. Joralemon, Gibson, Dunn &
Crutcher LLP, Warren L. Feldman, Skadden, Arps, Slate, Meagher & Flom LLP,
Frank A. Libby, Jr., John J. Commisso, and LibbyHoopes, P.C. were on
supplemental brief, for appellee Hussey.
Douglas R. Cox, Michael J. Scanlon, Jason J. Mendro, Gibson, Dunn &
Crutcher LLP on supplemental brief for Center
[*2] for Audit Quality, amicus
Carter G. Phillips, Jonathan F. Cohn, Daniel A. McLaughlin, Eric D.
McArthur, Sidley Austin LLP, 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 on supplemental brief
for United States Chamber of Commerce, amicus curiae.
John Pagliaro, Staff Attorney, and Martin J. Newhouse on supplemental
brief for New England Legal Foundation and Associated Industries of
Massachusetts, amici curiae.
Judge: Before Lynch, Chief Judge,
Torruella, Selya, Boudin, Lipez and Howard, Circuit Judges. BOUDIN, Circuit
Judge, with whom LYNCH, Chief Judge, joins, concurring. LIPEZ, Circuit Judge,
with whom TORRUELLA, Circuit Judge, joins, dissenting in part.
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