Court Looks to Relationship of Parties to Determine Existence of Investment Contract

In a case decided June 11, 2008, the Second Circuit has added clarification to the Supreme Court’s definition of an “investment contract” as explained in SEC v. J.W. Howey, Co., 328 U.S. 293 (1946). In U.S. v. Leonard, the court determined that courts should analyze the investment relationship beyond the formal terms of an agreement […]