United States Second Circuit

In a case addressing whether the SEC Rule 16b-3(d) protective shield extends to "directors by deputization", the circuit court: 1) defers to the SEC's interpretation of Rule 16b-3(d) in concluding that owning more than 10% of a company's listed stock does not strip a "director by deputation" of protections otherwise afforded by Rule 16b-3(d); and 2) rules that the SEC's promulgation of Rule 16b-3(d) lies within the authority granted to it by Section 16(b) as its view is well supported by the Supreme Court's analysis of Congressional intent.

Appellate Information

• Decided 04/10/2008
• Published 04/10/2008

Judges

• BARRINGTON D. PARKER, Circuit Judge:, Before:  KATZMANN, B.D. PARKER, RAGGI, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Glenn F. Ostrager, Ostrager Chong Flaherty & Broitman P.C., New York, N.Y. & Bragar Wexler & Eagel, P.C., New York, N.Y., for Appellant Andrew E. Roth.


• For Appellees:
  
• Gerson A. Zweifach (George A. Borden, Rachel R. Shanahan, on the brief), Williams & Connolly LLP, Washington, D.C., for Appellees Perseus, L.L.C., Perseus Capital, L.L.C., Perseus 2000 Expansion, L.L.C., Perseus Investors Group, L.L.C., Frank H. Pearl, John Does Nos 1-20, and Beacon Power Corporation., Brian G. Cartwright (Alexander F. Cohen, Jacob H. Stillman, Allan A. Capute, on the brief), Securities and Exchange Commission, Washington, D.C., Amicus Curiae in Support of Appellees.