Has the Time Come to Prune the 'Judicial Oak'? Semerenko V. Cendant Corp.

Abstract

This comment analyzes the Third Circuit's opinion in Semerenko v. Cendant Corp. In particular, the author focuses on the development of the private right of action under Rule10b-5, and specifically upon the various interpretations of the "in connection with" element of that Rule. Next, the author discusses the Third Circuit's deviation from the "high proximity" standard in favor of the more liberal "materiality and dissemination" approach utilized by the Third Circuit in Semerenko. The author concludes that by adopting the more liberal approach, the Third Circuit has invited district courts to accept jurisdiction over claims better left to resolution under state law. The author also argues that the deviation by the Third Circuit in Semerenko is inconsistent with the goal of the Private Securities Litigation Reform Act of 1995.