Publication Date
1-1-2006
Document Type
Article
Organizational Units
Sturm College of Law
Keywords
Secondary actors, Securities frauds, Enron, Worldcom, Corporate marketplace, Aiding and abetting liability
Abstract
This article argues that aiding and abetting liability should be reinstated for secondary actors in securities frauds. Such liability was eliminated by the Supreme Court's 1994 decision in Central Bank of Denver, N.A., v. First Interstate Bank of Denver, N.A. Since that decision, corporate fiascos such as Enron and Worldcom have shown the need to enhance our ability to deter fraud in the corporate marketplace. The article recognizes that the Supreme Court is unlikely to change course on this issue, and suggests that Congress should act by adding a provision the Public Company Accounting and Investor Protection Act of 2002 (commonly known as Sarbanes-Oxley, or SOX) expressly granting a private right of action for aiding and abetting liability under Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934.
Publication Statement
Copyright held by the authors. User is responsible for all copyright compliance.
Originally published as Celia R. Taylor, Breaking the Bank: Reconsidering Central Bank of Denver After Enron and Sarbanes-Oxley, 71 Missouri L. Rev. 367 (2006).
Recommended Citation
Celia R. Taylor, Breaking the Bank: Reconsidering Central Bank of Denver After Enron and Sarbanes-Oxley, 71 Missouri L. Rev. 367 (2006).