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Securities Exchange Act of 1934, Section 10

 

Securities Exchange Act of 1934


Section 10 -- Regulation of the Use of Manipulative and Deceptive Devices

 

 

It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails, or of any facility of any national securities exchange--

    1. To effect a short sale, or to use or employ any stop-loss order in connection with the purchase or sale, of any security registered on a national securities exchange, in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.
    2. Paragraph (1) of this subsection shall not apply to security futures products.
  2. To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, any manipulative or deceptive device or any securities-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act), or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors.

    Rules promulgated under subsection (b) that prohibit fraud, manipulation, or insider trading (but not rules imposing or specifying reporting or recordkeeping requirements, procedures, or standards as prophylactic meassures against fraud, manipulation, or insider trading), and judicial precedents decided under subsection (b) and rules promulgated thereunder that prohibit fraud, manipulation, or insider trading, shall apply to security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act) to the same extent as they apply to securities. Judicial precedents decided under section 17(a) of the Securities Act of 1933 and sections 9, 15, 16, 20, and 21A of this title, and judicial precedents decided under applicable rules promulgated under such sections, shall apply to security-based swap agreements (as defined in section 206B of the Gramm-Leach-Bliley Act) to the same extent as they apply to securities.

Class action filed against AT&T for allegedly acting as NSA's agent in domestic spying. See the Amended Complaint.

Sony Agrees To Stop Putting Unwanted DRM Software on music CD's. We are pleased to report that in working with the Electronic Frontier Foundation ("EFF"), Sony/BMG has agreed to settle a class action over the placement of digital rights management software on it's music CD's by stopping the practice, repalcing the CD's and compensating those who purchased the CD's. The EFF has a help page and resources concerning the settlement. Claim Forms are due by December 31, 2006. If you would like to submit a Claim Form online, please click here. If you have played a CD on your computer that contains either XCP or MediaMax 5.0 content protection software, you shouldupdate or uninstall the software to reduce your risk of security vulnerabilities.

Los Angeles court rules AT&T arbitration clause is not a part of the contract with consumers. The trial on whether the coverage maps of AT&T Wireless (now Cingular) are deceptive has been delayed as defendants now are seeking to compel arbitration after 7 years of litigation.

Bait and Switch Complaint filed against Dell  To view the complaint filed in federal court seeking nationwide class action status for bait and switch tactics click here.

Illegal Advertising of Internet Gambling Suit filed against Search Engines  To view the complaint filed in state court seeking to stop sponsored ads of internet gambling to be displayed by Google, Yahoo and other search engines click here.

Proposals to Revise ND Cal Local Rules. Changes being discussed for handling securities fraud class actions. Click here to view.

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