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Jeff G. Hammel, a partner at Latham & Watkins, and Robert J. Malionek, a senior associate at the firm, write that recently plaintiffs in securities fraud litigation have attempted to extend the reach of primary liability beyond those who actually make statements or remain silent in the face of a duty to speak (the scenario covered by Rule 10b-5(b)) by alleging that the defendant committed "deceptive conduct" under Rule 10b-5(a) and (c) memerely by participating in an alleged scheme to defraud.
May 08, 2007 at 12:00 AM
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