PUBLISHED ON: July 31, 2007
A recent U.S. Supreme Court decision could help bolster America’s standing as a competitive location for capital formation. Or at the very least, the decision has forestalled the onslaught of plaintiff antitrust claims against Wall Street’s IPO underwriting process.
In a 7-1 vote, the U.S. Supreme Court held in Credit Suisse Securities (USA) LLC v. Billing that the securities laws implicitly precluded application of the antitrust laws to the practice of tying the sale of IPO shares to the sale of less desirable shares in the aftermarket and “laddering” the sales of such shares.
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