A federal judge has rejected a
The case involved two former executives of
In the past few months, the Commission lost another case in New York, had a case dismissed due to long delays in Connecticut and had a judge dismiss half the defendants in a third case in Massachusetts.
Lawyers say the two main reasons the SEC is losing or running into trouble on the cases are, first, that it has stepped up its enforcement proceedings to include people with indirect involvement in wrongdoing and, second, its common practice of barring defendants from the securities industry has them fighting harder to win.
“If the SEC has its way, persons in a position of authority will find themselves facing liability simply by virtue of their status as company leaders—whether or not they took any action in furtherance of the alleged fraud or not,” said John Sten of