Justice Lewis F. Powell, Jr. and the Counterrevolution in the Federal Securities Laws

The confirmation of Lewis F. Powell, Jr., to the Supreme Court coincided with a dramatic shift in the Court\u27s approach to securities law. This Article documents Powell\u27s influence in changing the Court\u27s direction in securities law. Powell\u27s influence was the product of his extensive experience with the securities laws as a corporate lawyer, which gave him much greater familiarity with that body of law than his fellow Justices had. That experience also made him skeptical of civil liability, particularly class and derivative actions. Powell\u27s skepticism led him to interpret the securities law in a consistently narrow fashion to reduce liability exposure and increase predictability. Powell also rebuffed the Securities and Exchange Commission\u27s efforts to expand its reach, most notably in insider trading and takeover regulation. Powell\u27s experience and interest brought a halt to the continuing expansion of the federal securities law