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Univ. of Toledo College of Law

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Friday, June 5, 2009

Geffen on Securities Act Claims Against Mutual Funds

A Shaky Future for Securities Act Claims Against Mutual Funds, by David M. Geffen, Dechert LLP, was recently posted on SSRN.  Here is the abstract:

 
The article considers the liability of mutual fund issuers under Sections 11(a) and 12(a)(2) of the Securities Act of 1933. In a Securities Act Section 11(a) or Section 12(a)(2) action, a plaintiff complains of a materially misleading statement in an issuer's registration statement. The article explains why a mutual fund issuer, by establishing a loss causation defense, should prevail in defending these actions. For a mutual fund, establishing a loss causation defense is straightforward, and a mutual fund can defeat Section 11(a) and Section 12(a)(2) claims at the pleading stage of a lawsuit. In effect, mutual funds and related defendants are largely and, perhaps, wholly insulated from Securities Act Section 11(a) and Section 12(a)(2) claims.

http://lawprofessors.typepad.com/securities/2009/06/geffen-on-securities-act-claims-against-mutual-funds.html

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