The right to withdraw, a registration statement filed with the Securities and Exchange Commission was involved in a recent case. The plaintiff had filed a registration statement with the Securities and Exchange Commission. The statement became effective. Thereafter, the commission instituted proceedings under the stop order provision. There had been no sale of shares to which the registration statement related. After the hearings commenced, plaintiff petitioned the commission for permission to withdraw the registration statement. The commission denied the petition. Thereupon plaintiff filed a bill in equity, praying that the commission be required to permit plaintiff to withdraw its registration statement and that further proceedings by the commission against plaintiff be enjoined. The federal district court dismissed the bill on the ground that the order denying withdrawal of the registration statement was interlocutory only and not reviewable by a collateral attack. The court of appeals affirmed this decision on the ground that after the registration statement had become effective it would be contrary to the public interest to permit the withdrawal of the registration statement.
Fred C. Newman,
SECURITIES LEGISLATION - ACT OF 1933 - WITHDRAWAL OF REGISTRATION STATEMENT,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol37/iss8/7