Court Opinion

ID: 9639484
Source: CourtListenerOpinion
Date Created: 2023-08-22 16:20:01.785119+00
Date Added: 2024-06-11T18:10:19.111256
License: Public Domain

*742SWAN, Circuit Judge
(dissenting).
I think the majority opinion has construed the statute more broadly than its language will permit. In my opinion section 5, as limited by section 4, forbids only conduct by an issuer, underwriter or dealer. Concedediy the appellee is neither an issuer nor a dealer. The definition of an underwriter, section 2(11), includes three classes: • (a) “any person who has purchased from an issuer with a view to * * * the distribution of any security”; (b) “any person who * * * sells [solicits “an offer to buy”, section 2(3)] for an issuer in connection with, the distribution of any security”; and (c) “any person who * * * participates or has a direct or indirect participation in any such undertaking.” The appellee can fall only within class (b). To include it within that class gives no meaning to the words “for an issuer”. Concedediy it has no relationship whatever with the Chinese Government, “the issuer”. The extent or success of its solicitations cannot be material; a single solicitation of an offer to buy would be equally within the language. Hence, a single newspaper editorial, published without instigation by the Chinese Government and merely urging the purchase of the bonds in the name of patriotism, would make the newspaper an “underwriter”. I cannot believe the statute should be so interpreted. It is my opinion that the decree should be affirmed.