This appeal concerns Appellants' claims against Appellees Sunset Financial Services, Inc. ("Sunset") and Kansas City Life Insurance Company ("KCL") for damages arising out of a Ponzi scheme perpetrated by Bryan Behrens, a registered representative of Sunset and general agent of KCL. Appellants br...   MORE>>

Melvin Dokich sold stock for Efoora, Inc., a company that claimed to be developing diagnostic tests for HIV, mad-cow disease, and blood glucose levels. Unfortunately, Efoora in the end was nothing but a phony. The company invited potential investors and customers to its headquarters in Buffalo Grove...   MORE>>

Christine Favara and Frank Custable were convicted of fraudulently acquiring and selling corporate securities. The district court sentenced Favara to 70 months in prison and Custable, the organizer of the scheme, to 262 months in prison. They appeal their sentences as unreasonable. For the reasons s...   MORE>>

Millenium Holding Group, Inc., has shares that were registered under the Securities Act of 1933 and are traded over the counter. It also has few assets and is insolvent. In 2004 its assets came to $60,000 and its liabilities to $1.5 million; things have not improved since. Millenium does not have an...   MORE>>

This case poses the question whether the court or an arbitrator is responsible for deciding whether a particular document that the parties signed qualifies as a contract, and if so, whether that contract includes an arbitration clause. Alfred Janiga is a Polish immigrant who has lived and worked in ...   MORE>>

This is a securities class action against Mercury Interactive Corp. (“Mercury”), some of its former officers and directors, and its auditor. The action was settled early on, a settlement class was certified, the settlement was approved, and attorneys’ fees were awarded per the settlement agree...   MORE>>

Investors injured by fraud may recover under federal securities law only if the deceit caused them to purchase or sell securities. Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723 (1975). This purchaser-seller rule limits implied private rights of action but not the substantive requirements of fe...   MORE>>

This appeal concerns a civil enforcement action filed by the Securities and Exchange Commission (“SEC”). After concluding that there were securities law violations, the district court entered a final judgment under Federal Rule of Civil Procedure 54(b) pursuant to a partial summary judgment agai...   MORE>>

The issue we must decide in this appeal is whether there is a private cause of action to enforce the provisions of § 13(a) of the Investment Company Act of 1940 (“ICA” or “1940 Act”), 15 U.S.C. § 80a-13(a). That section generally requires an investment company to obtain shareholder approva...   MORE>>

We must decide whether a material misrepresentation in a prospectus caused actionable loss to shareholders when the price of the company’s stock did not decline in the weeks immediately following disclosure of the correct information.

I

A

Section 12(a)(2) of the Securities Act of 1933 imp...   MORE>>