Random samplings of new affecting
the estate planning industry
Compiled by Christopher Weems, Associate Editor
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Significant Securities Rulings Handed Down
The U.S. Court of Appeals for the Second Circuit earlier this month issued two significant securities law decisions. In the first, the Second Circuit comprehensively examined the issue of loss causation in the context of a securities fraud claim, and attempted to reconcile several seemingly inconsistent rulings it has issued on the subject over the past two decades. In the second decision, the court addressed the issue of "beneficial ownership" and analyzed whether a shareholder who individually owned less than 10 percent of a company's stock nevertheless could be deemed a beneficial owner of more than 10 percent of stock for the purposes of Sec. 16(b) of the Securities Exchange Act by virtue of his relationship with two other shareholders.