Court Opinion

ID: 8880187
Source: CourtListenerOpinion
Date Created: 2022-11-26 20:20:11.473995+00
Date Added: 2024-06-11T17:06:36.271383
License: Public Domain

WATERMAN, Circuit Judge
(concurring) :
I concur in Judge FRIENDLY’S opinion. The area of the law into which the Securities and Exchange Commission has now moved is an area in which perceptive regulatory proceedings have been long overdue when it is recognized that the intent of Congress was to protect individual outside investors who buy and sell corporate securities on national exchanges from receiving incomplete or inaccurate information from corporate officers and corporate managément. In adjudicating the Commission’s regulatory efforts in the area, we must, of course, move on a case-by-case basis, and with care, as in SEC v. Texas Gulf Sulphur, 401 F.2d 833 (2 Cir. Aug. 13, 1968) but with the Congressional mandate to protect investors always in mind. As stated in the concurring opinions of my brothers KAUFMAN and HAYS, there is a world of difference on the one hand between cash buy-sell agreements and agreements to compensate finders in cash and, on the other, those agreements when management arranges to have blocks of stock be the consideration. For now, in view of the somewhat casual and confused record before us here, I am content with Judge FRIENDLY’S conservative disposition of the issues presented to us in the present case.