Skip to main content

  • AddRemove
  • Build a Report 
Legal Update

Fraud and Forbearance: State Courts Divided on Whether to Recognize Claims by Securities Holders

14 June 2010
Mayer Brown Legal Update
Two recent appellate court decisions from Georgia and New York demonstrate the current divergence between a number of US states regarding whether holders of securities can maintain a cause of action related to alleged fraud and negligent misrepresentation (holder claims). With its recent decision, Georgia joins a handful of other states, including California, Massachusetts, Wisconsin, New Hampshire and New Jersey, that have recognized holder claims, while a New York state appellate court cast doubt on the viability of holder claims.


  • Brian J. Massengill
    T +1 312 701 7268
  • Stanley J. Parzen
    T +1 312 701 7326

The Build a Report feature requires the use of cookies to function properly.  Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently.  If you do not accept cookies, this function will not work.  For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.