Supreme Court rules brokers can be liable for sending fraudulent investment pitches, even if they didn’t write them
WASHINGTON—The Supreme Court on Wednesday upheld Securities and Exchange Commission efforts to sanction stockbrokers for disseminating false statements to clients.
In a 6-2 ruling written by Justice Stephen Breyer, the court said broker Francis Lorenzo could be held liable for sending out emails that solicited investments in a startup energy company that claimed to be able to generate electricity by converting solid waste to gas.
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