The Second Circuit rejected a lower court's reading of the standard as requiring the SEC to prove the aider and abettor proximately caused the harm on which the primary violation was predicated.
August 09, 2012 at 12:00 AM
1 minute read
The test for the “substantial assistance” component of aiding and abetting liability in civil securities law enforcement actions has been clarified by the U.S. Court of Appeals for the Second Circuit.
The circuit rejected a lower court’s reading of the standard as requiring the U.S. Securities and Exchange Commission to prove the aider and abettor proximately caused the harm on which the primary violation was predicated.
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