From our private database of 14,000+ case briefs...
Janus Capital Group, Inc. v. First Derivative Traders
United States Supreme Court
131 S.Ct. 2296 (2011)
Janus Capital Group, Inc. (JCG) (defendant) created the Janus Investment Fund (JIF), a family of mutual funds legally distinct from JCG. Janus Capital Management LLC (JCM) (defendant) provided investment advisory services to JIF. All officers of JIF were officers of JCM. In accordance with legal requirements, JIF issued prospectuses for several of its funds. These prospectuses stated that market timing was not a proper practice for the funds, and implied that JCM would seek to restrict it. In September 2003, the New York State Attorney General filed a complaint alleging that JCG had made secret arrangements to allow market timing for several of the funds managed by JCM. Consequently, investors withdrew money from JIF mutual funds, causing JCG a significant loss of income. First Derivative Traders (First Derivative) (plaintiff) brought suit against JCG and JCM on behalf of other owners of JCG stock. The complaint alleged that JCG and JCM violated Securities and Exchange Commission Rule 10b-5 by issuing mutual fund prospectuses containing misleading statements. The District Court found that First Derivative failed to state a claim that JCM made the misleading statements and dismissed the complaint. The Court of Appeals for the Fourth Circuit reversed. This Court granted certiorari.
Rule of Law
Holding and Reasoning (Thomas, J.)
Dissent (Breyer, J.)
What to do next…
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.
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 199,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 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.