United States Tenth Circuit

In a civil enforcement action in which the SEC alleged that defendants violated section 10(b) of the Securities and Exchange Act of 1934 and section 17(a) of the Securities Act of 1933 in relation to material misstatements and omissions contained within a public company's periodic financial reports filed with the SEC, summary judgment for plaintiff is affirmed where: 1) the SEC need not establish that specific misstatements or omissions in a financial report can be publicly attributed to an individual defendant in order to prove liability for a violation; 2) because defendants caused misstatements and omissions to be made, and knew that the statements were calculated to reach investors, they could be held liable; 3) fraudulent statements are made "in connection with" the sale of securities when they are reasonably calculated to influence investors, and the misrepresentations are material to an investor's decision to buy or sell the security; and 4) the misstatements or omissions made by defendant occurred "in the offer or sale" of securities.

Appellate Information

• Decided 09/02/2008
• Published 09/02/2008

Judges

• LUCERO, Circuit Judge., Before LUCERO, HOLLOWAY, and EBEL, Circuit Judges.

Court

• United States Tenth Circuit

Counsel

• For Appellees:
  
• Richard O. Weed, Weed & Co. LLP, Newport Beach, CA, for the Defendants-Appellants., Christopher Paik (Brian G. Cartwright and Eric Summergrad, with him on the brief), Securities and Exchange Commission, Washington, DC, for the Plaintiff-Appellee.