Susan Muck, co-chair of Fenwick’s securities enforcement and corporate governance practices, talked to Law360 about major decisions affecting securities law in 2019, including Lorenzo v. SEC and Emulex Corp. v. Gary Varjabedian et al.

Muck noted that even though Lorenzo originated from a SEC enforcement action, the case’s more significant implications may be in private securities class action litigation.

She told Law360 the decision may revive efforts to hold liable ‘disseminators’ of a misstatement, and anticipates an uptick in “class actions naming ‘non-makers’ like bankers, auditors and other secondary actors, alleging claims that look a lot like the ‘scheme’ liability cases in the years after various high-profile corporate meltdowns.”

In Emulex, Muck noted that “the Supreme Court seems interested in the question of shareholders’ right to sue over allegedly deficient tender offer disclosures, so the Court may well reach for an opportunity to consider the issue in a case that is procedurally less quirky than Emulex.”

The full article is available on Law360​ (subscription required).​


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