The 2nd U.S. Circuit Court of Appeals insists that function matters over form in determining whether an arrangement amounts to an investment contract for purposes of federal securities laws.
In United States v. Leonard, 05-5523-cr, the circuit has said that what really matters in deciding whether two defendants could be held criminally liable for securities fraud is that the investors to whom the defendants marketed interests in two film companies were passive, rather than actively involved in the management of the companies.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]