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Authors

James L. Miller

Abstract

The Securities Exchange Act of 1934 is principally designed to protect investors through regulation of securities transactions on the organized exchanges and in the over-the-counter markets. In addition to the creation of the Securities and Exchange Commission as its leading enforcement mechanism, the 1934 Act provides for criminal penalties and, in certain instances, private causes of action for individuals who incur damage by others' violations of the Act. However, courts will often imply a civil cause of action for an injured party despite the absence of express statutory authorization.3 Subsequent judicial attempts to determine when supplemental civil relief can or should be implied has traditionally resulted in the courts' inability to formulate consistent and workable analytical standards of implication. Recently, however, the Supreme Court has indicated an attempt to reappraise its position and adhere to an arguably stricter standard for the judicial implication of private causes of action. Touche Ross v. Redington represents the most current example of the willingness of the Court to maintain this standard.

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