Liability for Aiding and Abetting Securities Violations Act of 2009

News Brief

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.

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Cydney Posner Special Counsel, San Francisco
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