SCOTUS: Fraud is OK if you create a separate artificial person to take the rap

posted by
June 13, 2011
Posted in News

"A divided U.S. Supreme Court, throwing out a suit against Janus Capital Group Inc. (JNS), limited the ability of shareholders of mutual fund companies to press securities fraud suits. The court, voting 5-4 along ideological lines, today said shareholders can’t sue Janus and a subsidiary for helping produce allegedly misleading prospectuses for Janus mutual funds. The majority said the funds are separate legal entities and that neither the parent company nor the subsidiary were responsible for the prospectuses." (06/13/11)  


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