Investors at Risk: Courts Narrow Scope of Securities Fraud Protection.
Securities fraud cases have evolved over time, with early courts expanding the definition to protect investors, but recent rulings have narrowed it down. The courts now believe securities fraud is not as broad as common law fraud, and they are hesitant to imply private rights of action. Looking at cases from the 1940s onwards, it seems that investors have generally not fared well in these legal battles.