Virtually every complaint alleging a violation of the federal securities laws includes, near the end of the pleading, one or more counts alleging “control person” liability. Those counts are typically directed against the usual suspects—corporate officers and directors and parent companies—although plaintiffs have sought to expand such defendants to include lenders, accountants, and investment bankers. Motion to dismiss decisions routinely address the “control person” counts generally at the end, often with a perfunctory paragraph or two.
Originally published in the July/August 2018 edition of The Banking Law Journal.
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