Misrepresentation in the Sale of Stock: Which Buyers Are Protected?

J. William Hicks, Indiana University Maurer School of Law

Abstract

This case concerns the civil liability of persons who misrepresent material facts in a privately negotiated sale of securities. The Supreme Court will decide whether Section 12(2) of the Securities Act of 1933 provides a buyer of securities with a right to rescind the purchase both in public and private offerings.