New York Court of Appeals
Kenneth H. Guice, Respondent v. Charles Schwab & Co., Inc., Appellant; Frank J. Evangelist, Jr., Respondent, v…
October 17, 199689 N.Y.2d 31
Summary
The New York Court of Appeals reversed the Appellate Division, holding that the plaintiffs' common‑law agency claims alleging inadequate disclosure of order‑flow payments are preempted by the 1975 amendments to the Securities Exchange Act of 1934 and the SEC's implementing regulations. The Court also rejected the argument that Section 28(a) savings provisions barred such preemption.