United States Second Circuit

Judgment finding defendant in violation of Section 17 of the Securities Act of 1933 is reversed, where: 1) the jury rejected all claims of intentional misconduct; and 2) the evidence establishes without contradiction that the funds were inconsistent in their proscriptions on market timing and that defendant's employer supported defendant's practices, and the jury could not find negligence in these circumstances without evidence as to an appropriate standard of care; and therefore, 3) the evidence was insufficient to support a verdict against defendant under a theory of negligence.

Appellate Information

• Decided 05/19/2014
• Published 05/19/2014

Judges

• JACOBS

Court

• United States Second Circuit

Counsel