Supreme Court of the United States
Janus Capital Group, Inc. v. First Derivative Traders
June 13, 2011131 S. Ct. 2296
Summary
The Court held that Janus Capital Management LLC (JCM) could not be held liable in a private action under Rule 10b–5 for false statements in Janus Investment Fund prospectuses because JCM did not make the statements. The Court defines the maker of a statement as the person or entity with ultimate authority over its content and communication. Justice Breyer dissented, arguing that the majority’s narrow definition creates a loophole allowing managers to use innocent intermediaries to mislead the public.