# U nit ed Sta tes C ou rt o f A pp eal s For t h e Firs t C ircu it

No. 07-1384 SECURI TI ES AND EXCHAN GE COMMI SSI ON, Pla int if f, Ap pe lla nt,
v. J AMES TAMBO NE; ROBERT HU SSEY, De fe nd a nts , App e lle e s.
Be fore L y nch, Chief Judge , To rr ue lla , B ou din , L ipe z an d H ow a rd , Ci rc uit Judg e s.

ORDER OF COURT Entered: F ebruary 23, 2009
The c ourt has under considera tion the appellee s' petitions for rehe aring en banc . I n light of the c omp le xity

of thi s c a se a nd

the se ri ou sn e ss o f t

he iss ue s pr e se nte d, the c ourt ha s de te rm ine d it would be usef

ul to obtain t h e v i ew s o f the SEC and of amici, and to permit a re sponse from petitioners, on the question of whe ther to g rant the petitions solely as to the Rule 10b-5 issue. The Rule 10b-5(b) issue f

o cu s es o n whether

primary liability extends, on the basis of an implied
s t at em en tt h eo ry , t o u n d er w r i t er s o f a m u tu al fu n d wh o ar e r es p o n s i b l e f

o r a n d d i re ct t h e f

i rm 's
e ff or ts t o s e ll s ha

re s o f t he fu nd and who , in c on ne c tio n w iththe se sa le s e ff or ts, dis se min a te prospec tuses containing materia l statements that they knew, or were rec kless in not knowing, we re false.I n the cour se of a ddressing this iss ue, the br iefs s h ould also addre ss severa l relate d

c on sid e ratio ns : 1. Wou ld t

he pa ne l ho ldi ng a lso a

pp ly to p ri vate pa

rt y su its a nd , if

so, wha t pri nc ipl e s, if any , would limit the re ach of that holding in private par ty actions under

Rule 10b-5? 2. As su min g the SEC has st ated a c la im f or a idi ng a nd

a be tti ng lia

bil ity , w hat pu

rp os e is serve d by expanding the sc ope of pr imary liability under Rule 10b- 5? 3. Wha t f

a c tua l in fo rm a tio n a

bo ut t he rol e of

un de rw ri te rs in t

he se c ur iti e s in du str

y is pertinent to the issue?
The SEC brie f is due 30 day s from the date of this order. Amicus br iefs and a ny responsive br ie fs fr om p e tit ion e rs , s ha ll b e du e 30 da y s th e re a ft e r. B ri e fs mus t c omp ly wi th o the rw ise applicable rules conc erning format, number of copie s, service , and other require ments. No brief may
e xce e d 3 0 p a g e s. The Clerk is dire cted to ser ve for thwith a copy

of this order on c erta i n p otential amici
or g a nizatio ns , a s lis te d in t he a tta c hme nt h e re to. Othe r a mic i are we lc ome to f

ile a mic us br ie fs . A ll
a mic i mu st s e e k le a ve of

the c ourt , a s o the rw ise re qu ir e d b y a pp lic a ble ru le s.
B y the Court : /s/ Ri char d Cushing Donova n, Clerk

cc: Hon. N athaniel M. Gor ton, Ms. Sarah A. Thor

nton, Mr
. Pappalar do, Mr. Fe ldman, Mr. Scher ker, M r . J o r a l e m o n , M r . S t e n , M s . F o s t e r , M r . C a d i g a n , M s . M o o r e , M r . L o n d o n , M r . A v e r y, M r . L i b b y, Mr . T ho ma s, & Mr . Co mm is so , Ms . De Gi a c omo , Ch a mbe r o f C omm e rc e of the Un ite d St a te s, Consumer Fe deration of America , Financ ial I ndustr y Reg ulatory Authority , National Associa tion of Share holder a

nd Consumer Attorney s, North Ameri ca n Securities Administrators Association, Securities I ndustry

and F inancial Ma

rkets Association, and U. S
. P ublic I ntere st Researc h Groups (PI RG).Ap pe nd ix Potential Amici
Chamber of

Commerce of

the United States, Consumer F ederat i o n of Amer ica, F inancial I nd us tr y Re g ulator

y Au tho ri ty , N a tio na l A sso c ia tio n o f S ha re ho lde r a nd C o n s u m e r A tt o r n e y s, No rt

h Am e ri c a n Se c ur iti e s A dmi nis tr a tor s A sso c ia tio n, Se c ur iti e s Ind us tr y a nd Fin a nc ia l Ma

rk e ts Association, and U.S. Public I ntere st Researc h Groups (PI RG).