192
Stevens, J., dissenting
of summary judgment to Central Bank was proper, and the judgment of the Court of Appeals is
Reversed.
Justice Stevens, with whom Justice Blackmun, Justice Souter, and Justice Ginsburg join, dissenting.
The main themes of the Court's opinion are that the text of § 10(b) of the Securities Exchange Act of 1934 (Exchange Act), 15 U. S. C. § 78j(b), does not expressly mention aiding and abetting liability, and that Congress knows how to legislate. Both propositions are unexceptionable, but neither is reason to eliminate the private right of action against aiders and abettors of violations of § 10(b) and the Securities and Exchange Commission's (SEC's) Rule 10b-5. Because the majority gives short shrift to a long history of aider and abettor liability under § 10(b) and Rule 10b-5, and because its rationale imperils other well-established forms of secondary liability not expressly addressed in the securities laws, I respectfully dissent.
In hundreds of judicial and administrative proceedings in every Circuit in the federal system, the courts and the SEC have concluded that aiders and abettors are subject to liability under § 10(b) and Rule 10b-5. See 5B A. Jacobs, Litigation and Practice Under Rule 10b-5 § 40.02 (rev. ed. 1993) (citing cases). While we have reserved decision on the legitimacy of the theory in two cases that did not present it, all 11 Courts of Appeals to have considered the question have recognized a private cause of action against aiders and abettors under § 10(b) and Rule 10b-5.1 The early aiding
1 See, e. g., Cleary v. Perfectune, Inc., 700 F. 2d 774, 777 (CA1 1983); IIT v. Cornfeld, 619 F. 2d 909, 922 (CA2 1980); Monsen v. Consolidated Dressed Beef Co., 579 F. 2d 793, 799-800 (CA3 1978); Schatz v. Rosenberg, 943 F. 2d 485, 496-497 (CA4 1991); Fine v. American Solar King Corp., 919 F. 2d 290, 300 (CA5 1990); Moore v. Fenex, Inc., 809 F. 2d 297, 303 (CA6), cert. denied sub nom. Moore v. Frost, 483 U. S. 1006 (1987); Schlifke v. Seafirst Corp., 866 F. 2d 935, 947 (CA7 1989); K & S Partnership v. Continental Bank, N. A., 952 F. 2d 971, 977 (CA8 1991); Levine v.
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