A Depression-era securities law is forcing courts to wrestle with what it means to sell securities in the age of YouTube and Instagram as venture capital firms and others hyping investment projects online are facing lawsuits from disgruntled buyers.
Federal law has for decades allowed investors who are defrauded or who bought an unregistered security to sue the seller, seeking a refund. New kinds of investments, including crypto projects promoted on social media, have tested the definition of “seller.”
The US Supreme Court this month declined to hear a case involving real estate management company Cardone Capital LLC. Cardone argued ...
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