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The GAO Releases A Dodd-Frank Study on Securities Fraud Liability for Secondary Actors

Section 929Z of the Dodd-Frank Act, which is officially one year old today, required the Government Accountability Office to conduct a study on the impact of creating a private right of action against secondary actors (i.e., lawyers, accountants, bankers, et al.) who aid and abet violations of the federal securities laws.

The study is a bit long on reporting and otherwise short on analysis, but if you’re looking for a brief overview of the anti-fraud provision of the federal securities laws, the role of secondary actors in securities transactions and a review of the legislative and judicial landscape concerning secondary actor liability, it’s not a bad place to start. The final few pages also recount policy arguments for and against a set of House and Senate proposals that were previously introduced to create private rights of action against secondary actors.

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