U.S. Supreme Court. The Court held that vendors, engaging in transactions that an issuer improperly recorded in the issuer's financial statements, were not primary Rule 10b-5 violators and therefore could not be sued in a private Rule 10b-5 lawsuit, even though the vendors knew that the issuer would use the vendor transactions to create false financials. The Court also held that a participant in a retirement plan could sue plan fiduciaries under the Employee Retirement Income Security Act of 1974 ("ERISA") where the participant claimed that failure to follow his instructions reduced the value of his account in the plan.
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