U.S. Court of Appeals for the 9th Circuit
Oct. 27, 2015
9th Circuit rules companies may be liable for the fraud of rogue CEOs
A company may be held liable for securities fraud committed by a double dealing CEO, even if the company lost millions of dollars as a result, the 9th Circuit ruled.
Daily Journal Staff Writer
A company may be liable for its chief executive officer's fraud, even if the CEO acted as a "rogue agent" in committing that fraud, the 9th U.S. Circuit Court of Appeals ruled Friday.
The panel reversed U.S. District Judge John F. Walter of the Central District, who had dismissed the shareholders' securities fraud claim on the basis that the CEO's deception had been to the company's detriment...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In