Section 20(b) of the Securities Exchange Act of 1934 provides a safe harbor provision for a controlling person who acted in good faith and did not directly or indirectly induce the act or acts constituting the violation or the cause of action.

Contributed in 2008 by Brian Ketcham
You've come to a rule . Check out the authorities below. When you find one you like, add it to your SpinDoc. more...
Please sign in or sign up to see the authorities.
Contribution Suggestions
vouch for authority for rule...
The Private Securities Litigation Reform Act of 1995, 15 U.S.C. 78u-4(b)(3)(B) provides that in any private action arising under the Securities...
vouch for authority for rule...
Respondeat superior is a viable theory of liability in a federal securities action.
vouch for authority for rule...
In a Rule 10b-5 action, the discovery period may begin to run because the plaintiff had either actual notice or inquiry notice of the alleged fraud.