RULE 10b-5, promulgated by the SEC pursuant to �10(b) of the Securities Exchange Act of 1934 (the act), prohibits any person from “employ[ing] a device, scheme, or artifice to defraud . . . , [or from] engag[ing] in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in connection with the purchase or sale of any security.”[1]�
It is commonly understood that a misrepresentation with respect to the value of a particular security would run afoul of �10(b).[2]� Some cases have found �10(b) to cover transgressions further afield from straightforward price manipulation.[3]� This past term, the Supreme Court of the United States revisited the ambiguous phrase “in connection with the purchase or sale of any security,” rendering an opinion that may have broadened the purview of Rule 10b-5 beyond what some courts, particularly in the Second Circuit, conceived to be its scope.
