Editor's Note :

Editor's Note :

We expect orders from the February 23 conference on Monday at 9:30 a.m. There is a possibility of opinions on Tuesday at 10 a.m.
On Monday the court hears oral argument in Janus v. American Federation of State, County, and Municipal Employees, Council 31. Amy Howe has our preview.
On Monday the court also hears oral argument in Ohio v. American Express Co. Beth Farmer has our preview.

Janus Capital Group, Inc. v. First Derivative Traders

Docket No. Op. Below Argument Opinion Vote Author Term
09-525 4th Cir. Dec 7, 2010
Tr.Aud.
Jun 13, 2011 5-4 Thomas OT 2010

Holding: Because the petitioner, a mutual fund investment adviser, did not make the false statements included in the mutual fund prospectuses of its clients, it cannot be held liable in a private action under SEC Rule 10b5, which prohibits mak[ing] any untrue statement of fact in connection with the purchase or sale of securities, for its role in preparing those prospectuses.

Plain English Holding: Investment advisors to a mutual fund cannot be sued under federal securities law for false statements made by the fund they advised.

Judgment: Reversed, 5-4, in an opinion by Justice Clarence Thomas on June 13, 2011. Justice Breyer filed a dissenting opinion, which Justices Ginsburg, Sotomayor, and Kagan joined.

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