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Quotation from SEC v. Capital Gains Research Bureau, Inc. by Supreme Court of the United States
“Failure to disclose material facts must be deemed fraud or deceit within its intended meaning, for, as the experience of the 1920's and 1930's amply reveals, the darkness and ignorance of commercial secrecy are the conditions upon which predatory practices best thrive.”
SEC v. Capital Gains Research Bureau, Inc., Opinion of the Court (Justice Goldberg), Part III (U.S. Reports text (Legal Information Institute))
Justice Goldberg explains why the Act's fraud language reaches silence about a material conflict.
Citation: "Failure to disclose material facts must be deemed fraud or deceit within its intended meaning, for, as the experience of the 1920's and 1930's amply reveals, the darkness and ignorance of commercial secrecy are the conditions upon which predatory practices best thrive." — Supreme Court of the United States, SEC v. Capital Gains Research Bureau, Inc., Opinion of the Court (Justice Goldberg), Part III (U.S. Reports text (Legal Information Institute)). (id sec-v-capital-gains-research-bureau-q1)
Portrait: Justice Arthur Goldberg - 1965 - A720-5, Yoichi Okamoto, Public domain.
