Liability for Aiding and Abetting Securities Violations Act of 2009

By Cydney Posner

You might be interested to know that Senator Arlen Specter, with three co-sponsors, has introduced a bill, S. 1551, Liability for Aiding and Abetting Securities Violations Act of 2009, that would overturn Central Bank of Denver by amending Section 10(b) under the Exchange Act to permit private civil actions against aiders and abettors, including, for example, accountants and attorneys: "For purposes of any private civil action implied under this title, any person that knowingly or recklessly provides substantial assistance to another person in violation of this title, or of any rule or regulation issued under this title, shall be deemed to be in violation of this title to the same extent as the person to whom such assistance is provided." The bill has been referred to the Senate Judiciary Committee.

This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.