Skadden Secures Favorable Ruling in SEC Case From En Banc Court

Skadden secured a ruling in the U.S. Court of Appeals for the First Circuit affirming the dismissal of a Section 10b-5(b) claim brought by the SEC against firm client Robert Hussey. In its opinion, issued on March 10, the en banc court rejected the SEC's broad interpretation of the word "make" as used in Rule 10b-5(b) of the Securities Exchange Act, and held that the SEC's expansive interpretation "is inconsistent with the text of the rule and with the ordinary meanings of the phrase 'to make a statement,' inconsistent with the structure of the rule and relevant statutes, and in considerable tension with Supreme Court precedent."