Congress passed the Securities Act of 1933, 15 U.S.C. §§ 77a et seq. (Securities Act), and the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a et seq. (Exchange Act, collectively the Acts), following the 1929 stock market crash that triggered the Great Depression. As discussed in Part I of this article (published in the Fall issue of Securities Litigation Journal), despite the clear intention of the drafters of the Acts to place the burden of telling the whole truth on the sellers of securities and to punish violators of the Acts, both Congress and the courts have significantly weakened the Acts over the past 80 years.
This article, the second in the two-part series, counts down the remaining Top 5 of the Top 10 obstacles to successfully litigating securities fraud claims under the Acts. Part I counted down numbers 10 through 6: