Logourl black
From our private database of 14,200+ case briefs...

Aaron v. Securities and Exchange Commission

United States Supreme Court
446 U.S. 680 (1980)


Facts

Peter Aaron (defendant) was a supervisor for an investment firm, E.L. Aaron & Company. Two salespersons who were supervised by Aaron made unfounded recommendations to investors regarding stock. The Securities and Exchange Commission (SEC) (plaintiff) alleged that Aaron had failed to stop the fraudulent behavior of the salespersons even after becoming aware of the salespersons’ behavior. The district court found that Aaron had knowingly aided and abetted the salespersons’ fraud. On Aaron’s appeal, the court of appeals found that the issue of intent was not necessary, holding that § 17(a) of the Securities Act of 1933, 15 U.S.C. § 77q(a), required only a showing of negligence without the need for a showing of intent. The SEC appealed to the United States Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Stewart, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 250,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.