Commercial Litigation and Arbitration

Weight to be Accorded Securities and Exchange Commission No-Action Letter

From Apache Corp. v. N.Y. City Employees’ Retirement Sys., 2008 U.S. Dist. LEXIS 32955 (S.D. Tex. April 22, 2008):

The proper weight to accord an SEC no-action letter is an issue of first impression in the Fifth Circuit. The Second Circuit, however, noted that no-action letters are interpretive be-cause they do not impose or fix a legal relationship upon any of the parties. See Amalgamated Clothing & Textile Workers Union v. Sec. & Exch. Comm'n, 15 F. 3d 254, 257 (2d Cir. 1994). That court concluded that no-action letters are nonbinding, persuasive authority. See id. at 257 & n.3. This court agrees. Therefore, a court must independently analyze the merits of a dispute even when affirming the SEC's conclusion. See, e.g., New York City Employees' Ret. Sys. v. Brunswick Corp., 789 F. Supp. 144, 146 (S.D.N.Y. 1992).

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