Goldstein v. Securities and Exchange Commission
United States Court of Appeals for the District of Columbia
451 F.3d 873 (2006)
Relevant factsFree
The SEC (defendant) adopted a rule requiring hedge fund advisers with 15 or more clients to register, defining "client" to include a fund's shareholders, limited partners, members, or beneficiaries; Goldstein (plaintiff) challenged that definition, arguing shareholders in a fund shouldn't count as individual clients of the fund's adviser.
IssueFree
Whether a shareholder in a hedge fund is properly considered a client of the fund's adviser, as opposed to only being a client where the adviser manages that shareholder's investments separately from the fund itself.