An Implied Private Right of Action under Section 16(a) of the Securities Exchange Act of 1934

Abstract

Judicial implication of private rights of action from federal securities legislation has been hailed as a major step toward meaningful regulation of securities practices and market stability. This Note examines a recent extension of implied liability under a provision not previously considered supportive of such a right. After attempting to develop a workable rationale for the private right, the author concludes that the extension cannot be supported and that the court should have taken heed of the cautiousness exhibited by other courts and refused to extend implied liability to situations not clearly within the intended protective scheme of the legislation.

Keywords

Securities Exchange Act

Publication Date

1971

Document Type

Article

Publication Information

23 Case Western Reserve Law Review 155 (1971)

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