Ian Roffman quoted in “Financial Services Cases To Watch In 2011”Print PDF
Ian Roffman, a member of the firm’s Securities practice group, and a former senior trial lawyer at the Securities and Exchange Commission, was quoted in “Financial Services Cases To Watch In 2011” in Financial Services Law360 on January 1. Ian discusses the financial services cases that are expected to provide clarification on the liability of third parties and the type of conduct that could potentially violate insider trading provisions.
Ian discusses Janus Capital Group Inc. et al. v. First Derivative Traders et al. and whether an investment advisor to a family of mutual funds can be held liable for statements made on a mutual fund’s prospectus. “The issue before the supreme Court is what does it mean to make a statement that would subject someone to liability under 10(b)(5),” Ian said. “The answer to this question has the potential to have far-reaching implications for defining the scope of what conduct is subject to this anti-fraud provision.”
Ian goes on to discuss the fact that insider trading is likely to be a major focus for hedge funds and financial institutions in 2011. “The recent subpoenas appear to be suggesting that long-standing industry practices may constitute insider trading,” Ian said. “It will be interesting to see what type of conduct the U.S. Securities and Exchange Commission [and other government agencies] will charge as insider trading in the coming year.”