Mutual Fund Shareholder Suits Curbed by U.S. Supreme Court - Bloomberg

Only the person or company in whose name a false statement is issued, i.e. only the one "ultimately responsible" is the "maker" of a false statement. The court immunized Janus Capital's in-house captive investment advisers from 10(b)(5) fraud actions. They accomplished this via a remarkably narrow interpretation of the verb "make". One of the broadest verbs in the English language, its definitions extend for 12 pages in the micro-film edition of the Oxford English Dictionary. The court split along the usual 5-4 lines, with Justice Thomas writing the majority opinion. - GWC

Mutual Fund Shareholder Suits Curbed by U.S. Supreme Court - Bloomberg:

"A divided U.S. Supreme Court threw out a suit against Janus Capital Group Inc. (JNS) in a ruling that will limit the ability of shareholders of mutual fund companies to press securities fraud suits.
The court, voting 5-4 along ideological lines, today said shareholders can’t sue Janus and a subsidiary for helping produce allegedly misleading prospectuses for Janus mutual funds. The majority said that the funds are separate legal entities and that neither the parent company nor the subsidiary were responsible for the prospectuses."