Opinion ID: 2176586
Heading Depth: 1
Heading Rank: 8

Heading: conclusion

Text: We therefore conclude that the Commissioner has failed to demonstrate any error by the Court of Chancery. The Vice Chancellor properly did not affirm the Commissioner's finding of direct liability of Hibbard Brown because it is not supported by material and substantial evidence in the record. Moreover, we agree with the Court of Chancery's method of determining the number of violations of the statute and its conclusion regarding the appropriate magnitude of the sanction to be imposed. With respect to the cross-appeal, Hibbard Brown has not shown that the award of restitutionary damages through the retroactive application of 6 Del.C. § 7325(b) was erroneous under applicable legal principles governing the retroactive application of statutory amendments which provide only additional remedies. Moreover, the Court of Chancery properly exercised its discretion in affirming the revocation of the licenses of Martone and Hart in light of the substantial evidence establishing their misconduct. By contrast, the Court of Chancery's conclusion that Hibbard Brown failed to disclose adequately its status as a market maker is erroneous as a matter of law because it is based on the particular stock purchaser's lack of sophistication rather than what a reasonable investor would understand. We AFFIRM the Court of Chancery's decision upholding the license revocation of Martone and Hart and the finding that Hibbard Brown failed to supervise them. We REVERSE the Court of Chancery's conclusion that Hibbard Brown failed to disclose adequately its market maker status and REMAND the matter for further proceedings consistent with this opinion. [12]