Securities & Exchange Commission v. First City Financial Corp.

MEMORANDUM OPINION

BARRINGTON D. PARKER, Senior District Judge:

The Supreme Court reaffirmed only recently that a fundamental purpose of the Securities Exchange Act of 1934, as amended, 15 U.S.C. § 78a et seq. (“1934 Act” or “Act”) was “to protect investors against manipulation of stock prices” and to implement a “philosophy of full disclosure.” Basic Inc., et al. v. Levinson, et al., — U.S. —, 108 S.Ct. 978, 982, 99 L.Ed.2d 194 (1988). In delivering the ruling, Justice Blackmun was addressing problems of false statements and materiality under section 10(b) of the Act. The same underlying…