For Your Data Westward V. Prudential Securities, Inc. Example Brief

West v. Prudential Securities, Inc. illustration brief summary
282 F.3d 935 (7th Cir. 2002)

CASE SYNOPSIS

Plaintiffs investors sued accused investment companionship alleging a securities-fraud action. The U.S. District Court for the Southern District of Illinois granted course of report certification nether the fraud-on-the-market doctrine. The companionship moved for an interlocutory appeal pursuant to Fed. R. Civ. P. 23(f).

CASE FACTS
The investors alleged that their stockbroker who worked for the companionship told the investors that a certainly banking corporation was going to live on acquired at a big premium. This disputation was a lie. The investors traded on this data which they idea was confidential. In their lawsuit, the investors sought course of report certification for everyone who bought the bank's stock during the months when the stockbroker was making his faux statements.

DISCUSSION

• The courtroom of appeals held that the fraud-on-the-market doctrine did non apply because the data was non made available to the public. 
• The investors failed to position whatsoever causal link betwixt the non-public data in addition to securities prices. 
• Thus the tape did non back upward the extension of the fraud-on-the-market doctrine to the alleged non-public statements.

CONCLUSION
The guild granting course of report certification was reversed.

Recommended Supplements for Corporations in addition to Business Associations Law

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