Kimon Daifotis was the lead portfolio manager of the YieldPlus Fund. In August 2007, when YieldPlus was

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Kimon Daifotis was the lead portfolio manager of the YieldPlus Fund. In August 2007, when YieldPlus was suffering massive, unprecedented redemptions, Daifotis held two conference calls in which he allegedly falsely stated that "we've got very, very, very slight negative flows" and that "outflows have been minimal." Daifotis also allegedly made misrepresentations in YieldPlus's written materials in which he was directly quoted or in which statements were directly attributed to him, including a September 2005 brochure and a Spring 2006 brochure. When Yield Plus investors sued Daifotis for damages caused by the alleged misstatements, Daifotis argued that he had not "made" the statements and, therefore, could not be liable under Securities Exchange Act Rule 10b-5. Did the court agree?


Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-0071317658

15th edition

Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt

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