Westlaw Topical Highlights: Securities, July 25, 2013

July 25, 2013

Reuters ImageTopical Highlights for Securities provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Securities law. A Westlaw subscription is required to access the documents linked from this page

Commodity Futures: New guarantee agreement terminated the parties’ prior guarantee arrangement.  Prestwick Capital Management, Ltd. v. Peregrine Financial Group, Inc. 2013 WL 3766225 (C.A.7 (Ill.)) Under Illinois contract law, a second guarantee agreement between a futures commission merchant (FCM) and introducing brokers (IB), which guaranteed the IBs’ obligations under the Commodity Exchange Act (CEA), terminated the parties’ prior guarantee agreement with respect to all dealings between the IBs and their customers, absolving the FCM of any ongoing duty to guarantee obligations incurred by the IBs prior to the date of the second guarantee agreement. The court went on to clarify that an FCM which guarantees an IB’s obligations under the CEA has no duty to investors to notify them of changes to, or termination of, its broker relationships. Prestwick Capital Management, Ltd. v. Peregrine Financial Group, Inc. 2013 WL 3766225  (The full-texts of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Fraud: Defendants were not entitled to summary judgment dismissing 10(b) claim because CWs recanted and/or denied making statements.  City of Pontiac General Employees’ Retirement System v. Lockheed Martin Corp. 2013 WL 3389473 (S.D.N.Y.)