In Re Blech Securities Litigation

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that while the fraud-on-the-market theory is not available for common law fraud claims based upon misrepresentations or omissions, the theory is available for fraud claims based upon market manipulation
• holding viable claim stated against broker who allegedly instigated unlawful trading, “conceived of and participated in the initiation and clearing of sham transactions,” and “contrived and funded” those transactions
• stating that defendant must possess actual control over the transactions in question
• finding complaint against clearing firm viable where plaintiffs alleged that Bear engaged in activities that did not “reflect ... the standard practice of [a] clearing broker.”
• granting motion to dismiss Section 20(a) claim against clearing broker where plaintiffs did not allege that clearing broker had “actual control” over introducing broker
• distinguishing between a clearing bro ker’s routine clearing transactions and its direction or contrivance of allegedly fraudulent trades and finding that the latter, but not the former, are manipulative acts

Source: CourtListener parenthetical corpus (CC0).