Rose, Amanda Marie --- "The shifting raison d’être of the Rule 10b-5 private right of action" [2018] ELECD 1108; in Griffith, Sean; Erickson, Jessica; Webber, H. David; Winship, Verity (eds), "Research Handbook on Representative Shareholder Litigation" (Edward Elgar Publishing, 2018) 39

Book Title: Research Handbook on Representative Shareholder Litigation

Editor(s): Griffith, Sean; Erickson, Jessica; Webber, H. David; Winship, Verity

Publisher: Edward Elgar Publishing

ISBN: 9781786435330

Section: Chapter 3

Section Title: The shifting raison d’être of the Rule 10b-5 private right of action

Author(s): Rose, Amanda Marie

Number of pages: 18

Abstract/Description:

The chapter recounts the historical evolution of the private right of action under Rule 10b-5, explaining how it began as a cause of action not unlike traditional common law fraud and later morphed into the modern fraud-on-the-market class action. While the early version of the Rule 10b-5 private right was arguably consistent with standard corrective justice and deterrence rationales for private litigation, the author argues that the modern fraud-on-the-market class action is difficult to defend on these grounds. The historical and theoretical context provided by the chapter offers a lens for understanding contemporary scholarly debates over the social desirability of private Rule 10b-5 enforcement.