July 9, 2019

The Ninth Circuit Weighs In On GoT @GameofThrones

In the recently decided case Banks v. Northern Trust Corp., the Ninth Circuit made reference to Game of Thrones by writing,

Northern would like us to read Dabit without considering its clarification in Troice. But we will not render Troice meaningless the way that Game of Thrones rendered the entire Night King storyline meaningless in its final season. Troice directly supports our conclusion that a trustee’s misconduct – over which a beneficiary of an irrevocable trust has no control – cannot constitute misconduct “in connection with” the sale of covered securities where “the only party who decides to buy or sell a covered security as a result of a lie is the [trustee].” Troice, 571 U.S. at 388. To use the language in Troice, the trustee is both the buyer and the “fraudster”; because the trustee can deceive only itself with any alleged misconduct, its misconduct does not require SLUSA preclusion. 

Take that, GoT showrunners.

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