602
Ginsburg, J., dissenting
Remedy for Fraudulent Postdistribution Trading?, 20 Sec. Reg. L. J. 152 (1992); Rapp, supra, at 711; Comment, Applying Section 12(2) of the 1933 Securities Act to the Aftermarket, 57 U. Chi. L. Rev. 955 (1990). But see Weiss, The Courts Have It Right: Securities Act Section 12(2) Applies Only to Public Offerings, 48 Bus. Law. 1 (1992).
While Courts of Appeals have divided on § 12(2)'s application to secondary transactions,5 every Court of Appeals to consider the issue has ruled that private placements are subject to § 12(2). See Metromedia Co. v. Fugazy, 983 F. 2d 350, 360-361 (CA2 1992), cert. denied, 508 U. S. 952 (1993); Haralson v. E. F. Hutton Group, Inc., 919 F. 2d 1014, 1032 (CA5 1990); Nor-Tex Agencies, Inc. v. Jones, 482 F. 2d 1093, 1099 (CA5 1973); Pacific Dunlop Holdings Inc. v. Allen & Co. Inc., 993 F. 2d 578, 587 (CA7 1993) (exemptions in § 4, 15 U. S. C. § 77d, do not limit § 12(2)'s reach); see also Adalman v. Baker, Watts & Co., 807 F. 2d 359 (CA4 1986) (applying § 12(2) to private sale). "[L]ongstanding acceptance by the courts [of a judicial interpretation], coupled with Congress' failure to reject" that interpretation, "argues significantly in favor of accept[ing]" it. Blue Chip Stamps v. Manor Drug Stores, 421 U. S. 723, 733 (1975).
The drafters of the Uniform Securities Act, in 1956, modeled § 410(a)(2) of that Act 6 on § 12(2) of the federal Securi-5 Compare Pacific Dunlop Holdings Inc. v. Allen & Co. Inc., 993 F. 2d 578 (CA7 1993) (applying § 12(2) to secondary transactions), cert. granted, 510 U. S. 1083, cert. dism'd, 510 U. S. 1160 (1994), with First Union Discount Brokerage Services, Inc. v. Milos, 997 F. 2d 835, 842-844 (CA11 1993) (holding § 12(2) inapplicable to secondary transactions); Ballay v. Legg Mason Wood Walker, Inc., 925 F. 2d 682 (CA3) (same), cert. denied, 502 U. S. 820 (1991).
6 Section 410(a)(2) imposes liability on "[a]ny person who" "(2) offers or sells a security by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading (the buyer not knowing of the untruth or omission), and who does not sustain the burden of proof that he
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