October Term 2010 · Docket 09-525
Who is the primary speaker in a securities fraud claim?
Investors sue a fund manager for false statements. The manager argues it only drafted the text.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Perry argued affirming the judgment would authorize class actions against service providers.
Mr. Perry claimed this would assault prior Court decisions.
Mr. Perry stated Section 20(b) allows the Commission to proceed indirectly.
Justice Kennedy asked if the manager's knowledge of falsehood is a given.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 27-37 — Transcript, file page 4, lines 27-37
- Official Supreme Court Transcript — file page 4, lines 3-17 — Transcript, file page 4, lines 3-17
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 5, lines 17-25 — Transcript, file page 5, lines 17-25
- Official Supreme Court Transcript — file page 5, lines 35-7 — Transcript, file page 5, lines 35-7
- Official Supreme Court Transcript — file page 6, lines 19-23 — Transcript, file page 6, lines 19-23
- Official Supreme Court Transcript — file page 6, lines 37-39 — Transcript, file page 6, lines 37-39
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
- Official Supreme Court Transcript — file page 62, lines 51-11 — Transcript, file page 62, lines 51-11
- Official Supreme Court Transcript — file page 63, lines 39-49 — Transcript, file page 63, lines 39-49
- Official Supreme Court Transcript — file page 64, lines 27-31 — Transcript, file page 64, lines 27-31
- Official Supreme Court Transcript — file page 64, lines 35-37 — Transcript, file page 64, lines 35-37
- Official Supreme Court Transcript — file page 65, lines 17-21 — Transcript, file page 65, lines 17-21
- Official Supreme Court Transcript — file page 7, lines 29-39 — Transcript, file page 7, lines 29-39
- Official Supreme Court Transcript — file page 7, lines 3-13 — Transcript, file page 7, lines 3-13
- Official Supreme Court Transcript — file page 7, lines 51-9 — Transcript, file page 7, lines 51-9
- Official Supreme Court Transcript — file page 8, lines 13-15 — Transcript, file page 8, lines 13-15
- Official Supreme Court Transcript — file page 8, lines 21-23 — Transcript, file page 8, lines 21-23
- Official Supreme Court Transcript — file page 8, lines 29-41 — Transcript, file page 8, lines 29-41
A citizen's guide to the whole case
What this case is about
This case tests who counts as the primary speaker in a fraud claim. The lower court found the manager liable. The manager seeks reversal.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
How the case got here
The Supreme Court heard oral argument in this case on December 7, 2010.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 65, lines 17-21 — Transcript, file page 65, lines 17-21
What each side wants
The manager wants the Court to reverse the lower court judgment.
The investors want the Court to affirm the lower court judgment.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
What each side says
The manager argues it is not the primary speaker.
The investors argue the manager made the false statements.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
What the justices asked
Justice Ginsburg asked if the manager is a primary actor.
Justice Sotomayor asked if puppets become a legal defense for manipulation.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 27-37 — Transcript, file page 4, lines 27-37
- Official Supreme Court Transcript — file page 4, lines 3-17 — Transcript, file page 4, lines 3-17
- Official Supreme Court Transcript — file page 5, lines 17-25 — Transcript, file page 5, lines 17-25
- Official Supreme Court Transcript — file page 5, lines 35-7 — Transcript, file page 5, lines 35-7
- Official Supreme Court Transcript — file page 6, lines 19-23 — Transcript, file page 6, lines 19-23
- Official Supreme Court Transcript — file page 6, lines 37-39 — Transcript, file page 6, lines 37-39
- Official Supreme Court Transcript — file page 62, lines 51-11 — Transcript, file page 62, lines 51-11
- Official Supreme Court Transcript — file page 63, lines 39-49 — Transcript, file page 63, lines 39-49
- Official Supreme Court Transcript — file page 64, lines 27-31 — Transcript, file page 64, lines 27-31
- Official Supreme Court Transcript — file page 64, lines 35-37 — Transcript, file page 64, lines 35-37
- Official Supreme Court Transcript — file page 65, lines 17-21 — Transcript, file page 65, lines 17-21
- Official Supreme Court Transcript — file page 7, lines 29-39 — Transcript, file page 7, lines 29-39
- Official Supreme Court Transcript — file page 7, lines 3-13 — Transcript, file page 7, lines 3-13
- Official Supreme Court Transcript — file page 7, lines 51-9 — Transcript, file page 7, lines 51-9
- Official Supreme Court Transcript — file page 8, lines 13-15 — Transcript, file page 8, lines 13-15
- Official Supreme Court Transcript — file page 8, lines 21-23 — Transcript, file page 8, lines 21-23
- Official Supreme Court Transcript — file page 8, lines 29-41 — Transcript, file page 8, lines 29-41
Why it matters
This dispute defines liability for corporate service providers. It shapes the scope of private securities fraud suits. It affects how companies draft public disclosures.
Official sources for this section
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 27-37 — Transcript, file page 4, lines 27-37
- Official Supreme Court Transcript — file page 4, lines 3-17 — Transcript, file page 4, lines 3-17
- Official Supreme Court Transcript — file page 5, lines 17-25 — Transcript, file page 5, lines 17-25
- Official Supreme Court Transcript — file page 5, lines 35-7 — Transcript, file page 5, lines 35-7
- Official Supreme Court Transcript — file page 6, lines 19-23 — Transcript, file page 6, lines 19-23
- Official Supreme Court Transcript — file page 6, lines 37-39 — Transcript, file page 6, lines 37-39
- Official Supreme Court Transcript — file page 62, lines 51-11 — Transcript, file page 62, lines 51-11
- Official Supreme Court Transcript — file page 63, lines 39-49 — Transcript, file page 63, lines 39-49
- Official Supreme Court Transcript — file page 64, lines 27-31 — Transcript, file page 64, lines 27-31
- Official Supreme Court Transcript — file page 64, lines 35-37 — Transcript, file page 64, lines 35-37
- Official Supreme Court Transcript — file page 65, lines 17-21 — Transcript, file page 65, lines 17-21
- Official Supreme Court Transcript — file page 7, lines 29-39 — Transcript, file page 7, lines 29-39
- Official Supreme Court Transcript — file page 7, lines 3-13 — Transcript, file page 7, lines 3-13
- Official Supreme Court Transcript — file page 7, lines 51-9 — Transcript, file page 7, lines 51-9
- Official Supreme Court Transcript — file page 8, lines 13-15 — Transcript, file page 8, lines 13-15
- Official Supreme Court Transcript — file page 8, lines 21-23 — Transcript, file page 8, lines 21-23
- Official Supreme Court Transcript — file page 8, lines 29-41 — Transcript, file page 8, lines 29-41
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
- Official Supreme Court Transcript — file page 29, lines 19-21 — Transcript, file page 29, lines 19-21
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 49, lines 43-45 — Transcript, file page 49, lines 43-45
- Official Supreme Court Transcript — file page 61, lines 31-49 — Transcript, file page 61, lines 31-49
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.