Non-Enforcement Matters
Investment Advisers May Not File Securities Claims on Behalf of
Investors Except in Certain Cases
The Second Circuit Court of Appeals (Second Circuit) recently
held that an investment adviser lacked standing to file a
securities claim on behalf of its injured investors. See
W.R. Huff Asset Management Co. v. Deloitte & Touche,
Nos. 06-1664-cv(L), 06-1749(con) (2d Cir. December 3, 2008).
According to the Second Circuit, investment advisers suffer no
injury-in-fact even when their investors may have suffered a
constitutionally redressable injury.
Under Article III of the U.S. Constitution, in order to have
standing, a claimant must be able to point to a "concrete and
particularized harm to a legally protected interest." To meet
this constitutional threshold for standing, the claimant must show:
an injury-in-fact, the alleged unlawful conduct must have caused
the injury, and the courts must have the ability to redress the
alleged injury. If a
