A posting on a website is not a document filed pursuant to the Securities Exchange Act.
The plaintiff filed a complaint alleging a violation of Section 18 of the Securities Exchange Act of 1934 related to inaccurate information posted on the defendant’s website which the plaintiff relied on to his detriment. To prove liability under Section 18 of the Exchange Act, a plaintiff must show the following: (1) a false or misleading statement was contained in a document filed pursuant to the Exchange Act; (2) the defendant made or caused to be made the false or misleading statement; (3) the plaintiff relied on the false statement; and (4) the reliance caused loss to the plaintiff. The court dismissed the plaintiff’s claim for failure to establish the first element of his cause of action as a posting on a firm website is not a “document filed pursuant to the Exchange Act.”
Case Law Alerts, 4th Quarter, October 2015
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