San Diego Law Review Issue Search
| Volume | 39 |
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| Month | November |
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| Year | 2002 |
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| Title | Clearer Skies for Investors: Clearing Firm Liability Under the Uniform Securities Act |
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| Author(s) | Jeannette Filippone |
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| First Page | 1,327 |
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| Abstract | This Comment proposes that secondary liability under state blue sky laws that are modeled on the Uniform Act provides a viable theory under which clearing firms may be liable to investors for the fraud of an introducing firm. The author begins by examining the relationship between clearing and introducing firms, the role that clearing firms play in the continuation of micro-cap stock fraud, and reviews various arguments in favor of an extension of liability to clearing firms. She further discusses existing federal law regarding liability on clearing firms, as well as the impact of recent arbitration awards on securities fraud claims. The author concludes by analyzing the secondary liability provisions of the Uniform Securities Act and their potential application to clearing firms. |
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