Bar Bulletin

Bar Bulletin

WA Supreme Court Review: State Securities Act Protects the Public; Rely on It

November 2019 Bar Bulletin 

By Lawrence R. Cock, Jack M. Lovejoy and John T. Bender

On October 3, the Washington Supreme Court issued a decision in a case arising out of the 2007–08 financial crisis that will have a major impact on litigation under the Securities Act of Washington for years to come. In Federal Home Loan Bank of Seattle v. Credit Suisse Secs. (USA), LLC, et al., a 6-3 majority held that proof of reliance is not required to prove a claim for violation of RCW § 21.20.010(2), which renders unlawful any material misrepresentation or omission of fact by a seller of securities. ...

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