Blue Sky Laws
are state regulations established as safeguards for investors against securities fraud.
The pernicious effects of these laws-generally referred to as "blue sky laws
"-have been felt most acutely by small businesses, a vital component of our national economy.
(39) In addition, aggrieved plaintiffs are increasingly bringing claims for violations of state Blue Sky laws
. (40) The following list of potential claims, while not exhaustive, provides a practitioner with a primer on the strengths and limits of these claims.
The court found "nothing in the language of [section] 517.211 to indicate that the Florida [L]egislature intended to force victims of fraud to aggregate their profits and losses from separate transactions that happened to involve the same defendant and thus reduce their recoveries." (19) The court further reasoned that, "[i]f the methodology espoused by [Shearson] were adopted, it could serve as a license for broker-dealers to defraud their customers with impunity up to the point where losses equaled prior gains." (20) Other courts have reached similar conclusions applying federal securities laws and the Blue Sky Laws
of other states.
(97) Blue Sky laws
were investor protection statutes, designed to protect shareholders from fraud and deception, (98) and required corporations seeking to raise capital through the sale of securities to register with a state securities commissioner.
Also, Thomson West has released Westlaw 50 State Regulatory Surveys, a service that provides surveys of state regulations for researchers across four topics: insurance, blue sky laws
, employment and healthcare.
Goodkind, Blue Sky Law
. Is there Merit in the Merit Requirements?, 1976 Wis.
The Securities Portfolio contains: Federal Securities Law Reports ($1645); Blue Sky Law
Reports ($1230); the "Securities Library," containing the above mentioned publications, plus U.S.
Online information service Lexis-Nexis (Dayton, OH) has added a number of new information sources including: a variety of banking and securities publications, such as Blue Sky Law
Reporter, Federal Securities Law Reporter and Federal Banking Law Reports; and, a "cyberlaw library" containing federal and state case law, statutes, regulations and law reviews covering computer and Internet issues.
In addition, the Company has elected to participate in the Blue Sky Monitoring Service, affording the Company daily audits and guidance in complying with state-based Blue Sky laws
In any jurisdiction in which the securities laws or blue sky laws
require the Tender Offer to be made by a licensed broker or dealer, the Tender Offer will be deemed to be made on behalf of Juniper by Barclays, BofA Merrill Lynch or Citigroup or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
State "blue sky laws
" require frank disclosures by all companies offering securities.
Federal securities laws, such as Rules 10b-5 and 15c2-11 of the Securities Exchange Act of 1934 ("Exchange Act") as well as Rule 144 of the Securities Act of 1933 ("Securities Act"), and state Blue Sky laws
, require issuers to provide adequate current information to the public markets.
The idea is to eliminate differences in state Blue Sky laws
, which add legal complexity and cost for businesses looking to raise capital.