Article by Peter B. Oh
Tracing is a method that appears within multiple fields of law. Distinct conceptions of tracing, however, have arisen independently within securities and remedial law. In the securities context, plaintiffs must “trace” their securities to a specific offering to pursue certain relief under the Securities Act of 1933. In the remedial context, victims who “trace” their misappropriated value into a wrongdoer's hands can claim any derivative value, even if it has appreciated.
This Article is the first to compare and then cross-apply tracing within these two contexts. Specifically, this Article argues that securities law should adopt a version of the “rules-based tracing” method from remedial law. This method's tracing of exchanged value, instead of purchased securities, will restore broad access to private civil remedies and the optimal level of deterrence for fraudulent public offerings.
About the Author
Peter B. Oh. Assistant Professor of Law, William Mitchell College of Law. B.A. 1994, Yale College; J.D. 1997, University of Chicago.
Citation
80 Tul. L. Rev. 849 (2006)