University of Chicago Law School Chicago Unbound Journal Articles Faculty Scholarship 2018 Regulatory Enforcement Under New York's Martin Act: From Financial Fraud to Global Warming Richard A. Epstein Follow this and additional works at: https://chicagounbound.uchicago.edu/journal_articles Part of the Law Commons Recommended Citation Richard A. Epstein, "Regulatory Enforcement Under New York's Martin Act: From Financial Fraud to Global Warming," 14 New York University Journal of Law and Business 805 (2018). This Article is brought to you for free and open access by the Faculty Scholarship at Chicago Unbound. It has been accepted for inclusion in Journal Articles by an authorized administrator of Chicago Unbound. For more information, please contact
[email protected]. NEW YORK UNIVERSITY JOURNAL OF LAW & BUSINESS VOLUME 14 SUMMER 2018 NUMBER 3 REGULATORY ENFORCEMENT UNDER NEW YORK’S MARTIN ACT: FROM FINANCIAL FRAUD TO GLOBAL WARMING RICHARD A. EPSTEIN* INTRODUCTION ......................................... 806 I. THE UNLEASHING OF THE MARTIN ACT . 807 II. THE MARTIN ACT, THE COMMON-LAW ACTION FOR DECEIT, AND THE FEDERAL SECURITY AND EXCHANGE ACTS ................................ 819 A. The Origins of the Martin Act . 819 B. The Common Law of Deceit . 822 C. Basis of Liability: Fraud, Recklessness, Negligence, and Beyond .................................. 823 D. Statements of Fact: Materiality, Omissions, Opinions, and Predictions . 829 1. Materiality ............................... 830 2. Omissions ............................... 836 3. Statements of Fact and Opinion . 838 4. Predictions ............................... 844 E. Causation ................................... 845 F. Privity ...................................... 849 * Laurence A. Tisch Professor of Law, New York University School of Law; Peter and Kirsten Bedford Senior Fellow, the Hoover Institution; James Parker Hall Distinguished Service Professor of Law Emeritus and Senior Lec- turer, the University of Chicago Law School; Visiting Scholar, the Manhattan Institute.