On June 18, 2018 the U.S. Supreme Court agreed to hear an important case on behalf of Francis Lorenzo, a client of Meyers & Heim LLP. Robert Heim is Mr. Lorenzo's lead attorney and the appeal raises important legal questions about whether the SEC can sanction a person for alleged fraudulent misstatements even though that person didn’t make the misstatements at issue. This issue comes up in many SEC enforcement cases and it has split the circuit courts of appeals.
Mr. Lorenzo’s appeal is from a 2017 decision by the DC Circuit Court of Appeals that held that while Mr. Lorenzo did not make the statements at issue he could nevertheless be held liable for those statements under a fraudulent scheme legal theory. Mr. Lorenzo has argued that the DC Circuit Court’s ruling is contrary to a 2011 US Supreme Court decision in the case Janus Capital Group, Inc. v. First Derivative Traders. Oral argument at the Supreme Court is anticipated to take place in November 2018.