SEC v. Dean, et al.

This case stemmed from the SEC's civil enforcement action against former infoUSA financial officers, including defendant. A jury found that defendant violated various securities laws and the district court imposed several civil penalties. Defendant subsequently appealed. The court concluded that defendant could not challenge the sufficiency of the evidence against him because he failed to file a postverdict motion under Federal Rule of Civil Procedure 50(b) after the district court denied his Rule 50(a) motion. The court also concluded that the district court did not err in admitting the testimony of the SEC's expert witness where the expert's use of the primary-purpose test as a means for applying the integrally-and-directly-related standard did not misconstrue a legal issue or alter the legal standard that defendant was required to apply as CFO. The court held, however, that it was not clear whether the jury made the finding necessary for the SEC's section 13(b)(5) of the Securities Exchange Act, 15 U.S.C. 78m(b)(5), claim and, based on the claims the SEC asserted against defendant, the bad-faith finding was unnecessary to a final resolution of the matter. Accordingly, the court vacated the conclusion that defendant violated section 13(b)(5) and the finding that defendant acted in bad faith, remanding for further proceedings. The court affirmed the case in all other respects. View "SEC v. Dean, et al." on Justia Law