context: The Financial Institutions call Lead Plaintiff's interpretation of O'Hagan a "gross misreading," leading to a result that is contrary to the Fifth Circuit's ruling in this action. O'Hagan involved an appeal of a criminal conviction for insider trading, not imposition of civil liability in a private action under SS 10(b). The Supreme Court did not address the reliance element at all because, unlike in a private cause of action, it does not apply to criminal cases.
citation_a.signal: see also
citation_a.identifier: 550 F.3d 106, 129-30
citation_a.parenthetical: unlike in a private action, reliance, economic loss, and loss causation are not elements that must be proven in an SEC enforcement action
citation_a.sentence: See, e.g., U.S. v. Haddy, 134 F.3d 542, 549 (3d Cir.1998) (holding that reliance is not an element of the crime of stock manipulation), cert. denied, 525 U.S. 827, 119 S.Ct. 75, 142 L.Ed.2d 59 (1998); see also S.E.C. v. Tambone, 550 F.3d 106, 129-30 (1st Cir.2008) (and cases cited therein) (unlike in a private action, reliance, economic loss, and loss causation are not elements that must be proven in an SEC enforcement action).
citation_b.signal: see
citation_b.parenthetical: holding that reliance is not an element of the crime of stock manipulation
citation_b.sentence: See, e.g., U.S. v. Haddy, 134 F.3d 542, 549 (3d Cir.1998) (holding that reliance is not an element of the crime of stock manipulation), cert. denied, 525 U.S. 827, 119 S.Ct. 75, 142 L.Ed.2d 59 (1998); see also S.E.C. v. Tambone, 550 F.3d 106, 129-30 (1st Cir.2008) (and cases cited therein) (unlike in a private action, reliance, economic loss, and loss causation are not elements that must be proven in an SEC enforcement action).