Section 17(a) of the Securities Act of 1933 After Naftalin and Redington

In this article, the author analyzes two recent Supreme Court decisions involving the securities acts. The conclusions drawn from this analysis are that despite the Court's recent trend of restricting the scope of the federal securities laws, it is now possible for defrauded offerees and purchasers of securities to pursue private damage remedies under section 17(a) of the Securities Act of 1933. The scope of this implied private right of action is arguably limited to those instances in which the defendant engaged in reckless or willful misconduct. At the same time, however, the Securities and Exchange Commission will apparently be able to bring injunctive proceedings against negligent wrongdoers under the implicit authority of section 17(a)