Rule lOb-5 of the Securities and Exchange Act of 1934 has assumed greater importance in the wake of recent corporate scandals. There is great value, therefore, in reexamining the way courts calculate damages in Rule 1Ob-5 actions. The author begins with a brief primer on this important component of securities law. He then explains how damages are determined by Ninth Circuit federal courts in Rule 1Ob-5 actions. Finally, the author argues that statutory fines should replace the use of vague and complex factors to determine damages in Rule 1 Ob-5 actions.
Jeffrey M. Goldman,
Avoiding Blurred Lines: The Computation of Damages in Rule 10B-5 Securities Class Action Lawsuits in the Ninth Circuit and a Proposal for a More Sensible System,
2 Hastings Bus. L.J. 261
Available at: https://repository.uchastings.edu/hastings_business_law_journal/vol2/iss1/6