Undue Limitations in the Section 10(b) Purchaser-Seller Requirement.

This Article considers different applications of the Purchaser-Seller Rule that a plaintiff must satisfy to bring a Section 10(b) and Rule 10b-5 private action. The history and development of the Purchaser-Seller Rule under Supreme Court and lower federal court jurisprudence is considered, with emphasis on recent case law unduly constricting this Rule. In particular, the Second Circuit's restrictions on Section 10(b) standing are addressed, focusing on that appellate court's decision in Frutarom which adhered to an overly formulaic approach to Section 10(b) standing that is out of line with prior Second Circuit and Supreme Court precedent. The Article then considers Frutarom's impact both within and outside of the Second Circuit and explores a line of federal district court cases that rejected Frutarom's reasoning, embracing a more coherent view of Section 10(b) standing. Deficiencies in the Second Circuit's approach to Section 10(b) standing are then addressed and recommendations are proffered for a sound approach that comports with Supreme Court precedent. [ABSTRACT FROM AUTHOR]