[MR. GARRE]20LOC[MR. GARRE] Thank21VVthank you22PPyou ,23,, Mr24NPMr .25SENT. Chief26NPChief Justice27NPJustice ,28,, and29CCand may30MDmay it31PPit please32VVplease the33DTthe Court34NPCourt :35:: The36DTthe Ninth37JJninth Circuit38NNcircuit in39INin this40DTthis case41NNcase recognized42VVDrecognize an43DTan unprecedented44JJunprecedented inferred45VVNinfer private46JJprivate right47NNright to48TOto recover49VVrecover for50INfor negligent51JJnegligent violations52NNSviolation of53INof Section54NPSection 1455CD@card@ (56(( e57NNe )58)) of59INof the60DTthe Securities61NPSSecurities Exchange62NPExchange Act63NPAct of64INof 1565CD@card@ 193466CD@card@ .67SENT. For68INfor two69CDtwo independent70JJindependent reasons71NNSreason ,72,, we73PPwe would74MDwould ask75VVask this76DTthis Court77NPCourt to78TOto reverse79VVreverse that80DTthat decision81NNdecision .82SENT. First83RBfirst ,84,, as85INas the86DTthe government87NNgovernment itself88PPitself recognizes89VVZrecognize ,90,, this91DTthis Court92NPCourt 's93POS's precedents94NNSprecedent compel95VVPcompel the96DTthe conclusion97NNconclusion that98IN/thatthat Section99NPSection 14100CD@card@ (101(( e102LSe )103)) does104VVZdo not105RBnot confer106VVconfer any107DTany implied108JJimplied private109JJprivate right110NNright at111INat all112DTall .113SENT. [JUSTICE GINSBURG]114LOC[JUSTICE GINSBURG] Mr115NPMr .116SENT. Garre117NPGarre ,118,, why119WRBwhy should120MDshould we121PPwe consider122VVconsider that123IN/thatthat when124WRBwhen it125PPit was126VBDbe n't127RBn't raised128VVNraise in129INin this130DTthis case131NNcase until132INuntil ,133,, what134WPwhat was135VBDbe it136PPit ,137,, the138DTthe motion139NNmotion for140INfor rehearing141NNrehearing in142INin the143DTthe court144NNcourt of145INof appeals146NNSappeal ?147SENT? It148PPit went149VVDgo through150INthrough the151DTthe trial152NNtrial court153NNcourt ,154,, court155NNcourt of156INof appeals157NNSappeal ,158,, not159RBnot a160DTa word161NNword ...162:... everybody163NNeverybody accepted164VVDaccept there165EXthere was166VBDbe a167DTa private168JJprivate right169NNright of170INof action171NNaction .172SENT. And173CCand you174PPyou are175VBPbe now176RBnow making177VVGmake the178DTthe non-existence179NNnon-existence of180INof a181DTa private182JJprivate right183NNright your184PP$your principal185JJprincipal argument186NNargument .187SENT. But188CCbut ,189,, as190INas you191PPyou ...192:... as193INas you194PPyou well195RBwell know196VVPknow ,197,, this198DTthis is199VBZbe a200DTa court201NNcourt of202INof review203NNreview ,204,, not205RBnot of206INof first207JJfirst view208NNview .209SENT. If210INif we211PPwe 're212VBPbe going213VVGgo to214TOto take215VVtake up216RPup that217DTthat question218NNquestion ,219,, it220PPit should221MDshould n't222RBn't start223VVstart here224RBhere .225SENT. [MR. GARRE]226LOC[MR. GARRE] Sure227NPSure .228SENT. Justice229NPJustice Ginsburg230NPGinsburg ,231,, I232PPI would233MDwould point234VVpoint you235PPyou first236JJfirst to237TOto this238DTthis Court239NPCourt 's240POS's decision241NNdecision in242INin Central243NPCentral Bank244NPBank of245INof Denver246NPDenver ,247,, which248WDTwhich ...249:... in250INin which251WDTwhich case252NNcase this253DTthis Court254NPCourt present255NNpresent ...256:... confronted257VVNconfront the258DTthe exact259JJexact same260JJsame situation261NNsituation ,262,, except263INexcept we264PPwe 're265VBPbe actually266RBactually in267INin a268DTa much269RBmuch stronger270JJRstrong position271NNposition here272RBhere .273SENT. There274RBthere ,275,, the276DTthe petition277NNpetition for278INfor cert279NNcert was280VBDbe on281INon the282DTthe question283NNquestion of284INof whether285INwhether or286CCor not287RBnot the288DTthe standard289NNstandard for290INfor an291DTan implied292JJimplied private293JJprivate right294NNright of295INof action296NNaction for297INfor aiding298VVGaid and299CCand abetting300VVGabet under301INunder Section302NPSection 10303CD@card@ and304CCand Rule305NPRule 10b-5306NP10b-5 was307VBDbe recklessness308NNrecklessness or309CCor scienter310RBscienter .311SENT. The312DTthe cert313NNcert petition314NNpetition did315VVDdo n't316RBn't raise317VVraise any318DTany question319NNquestion about320RBabout whether321INwhether there322EXthere was323VBDbe an324DTan underlying325VVGunderlie implied326JJimplied private327JJprivate right328NNright for329INfor aiding330VVGaid and331CCand abetting332VVGabet .333SENT. This334DTthis Court335NPCourt itself336PPitself raised337VVDraise and338CCand added339VVDadd that340DTthat question341NNquestion .342SENT. It343PPit granted344VVDgrant certiorari345NNcertiorari ,346,, and347CCand it348PPit resolved349VVDresolve the350DTthe case351NNcase on352INon that353DTthat ground354NNground .355SENT. Now356RBnow we357PPwe are358VBPbe in359INin a360DTa much361RBmuch stronger362JJRstrong position363NNposition than364INthan Central365NPCentral Bank366NPBank because367INbecause ,368,, first369JJfirst of370INof all371DTall ,372,, it373PPit 's374VBZbe undisputed375JJundisputed that376IN/thatthat we377PPwe raised378VVDraise this379DTthis at380INat the381DTthe cert382NNcert stage383NNstage .384SENT. The385DTthe broader386JJRbroad issue387NNissue ...388:... argument389NNargument is390VBZbe fairly391RBfairly included392VVNinclude within393INwithin ...394:... within395INwithin the396DTthe question397NNquestion presented398VVDpresent .399SENT. Next400RBnext ,401,, we402PPwe did403VVDdo flag404NNflag the405DTthe argument406NNargument below407INbelow in408INin our409PP$our petition410NNpetition for411INfor rehearing412NNrehearing .413SENT. We414PPwe specifically415RBspecifically said416VVDsay ,417,, on418INon page419NNpage 14420CD@card@ of421INof our422PP$our petition423NNpetition for424INfor rehearing425NNrehearing ,426,, if427INif Section428NPSection 14429CD@card@ (430(( e431NNe )432)) 's433VBZbe implied434VVNimply right435RBright of436INof action437NNaction to438TOto ...439:... had440VHDhave to441TOto sweep442VVsweep in443INin negligence444NNnegligence ,445,, that446WDTthat would447MDwould be448VBbe grounds449NNSground for450INfor eliminating451VVGeliminate it452PPit ,453,, not454RBnot expanding455VVGexpand it456PPit .457SENT. [JUSTICE KAGAN]458LOC[JUSTICE KAGAN] But459CCbut ...460:... [MR. GARRE]461LOC[MR. GARRE] And462CCand we463PPwe cited464VVDcite the465DTthe Ninth466JJninth Circu467NPCircu it468PPit 's469VBZbe decision470NNdecision explaining471VVGexplain why472WRBwhy there473EXthere could474MDcould be475VBbe no476RBno private477JJprivate of478INof right479NNright of480INof action481NNaction under482INunder Section483NPSection 17484CD@card@ (485(( a486DTa )487)) .488SENT. I489PPI 'm490VBPbe sorry491JJsorry ,492,, Justice493NPJustice Kagan494NPKagan .495SENT. [JUSTICE KAGAN]496LOC[JUSTICE KAGAN] I497PPI mean498VVPmean ,499,, Mr500NPMr .501SENT. Garre502NPGarre ,503,, that504WDTthat is505VBZbe the506DTthe single507JJsingle sentence508NNsentence ,509,, right510RBright ?511SENT? And512CCand you513PPyou do514VVPdo n't515RBn't ask516VVask the517DTthe Ninth518JJninth Circuit519NNcircuit to520TOto overrule521VVoverrule its522PP$its decisions523NNSdecision about524INabout private525JJprivate rights526NNSright of527INof action528NNaction ;529:; it530PPit 's531VBZbe really532RBreally more533RBRmore just534JJjust part535NNpart of536INof your537PP$your argument538NNargument about539INabout the540DTthe negligence541NNnegligence standard542NNstandard ,543,, is544VBZbe n't545RBn't it546PPit ?547SENT? [MR. GARRE]548LOC[MR. GARRE] No549NPNo ,550,, I551PPI ...552:... I553PPI would554MDwould disagree555VVdisagree with556INwith that557DTthat .558SENT. It559PPit ...560:... it561PPit 's562VBZbe a563DTa separate564JJseparate point565NNpoint ,566,, flagging567VVGflag ...568:... we569PPwe do570VVPdo make571VVmake it572PPit on573INon the574DTthe next575JJnext page576NNpage as577INas well578RBwell .579SENT. So580RBso there581EXthere 's582VBZbe two583CDtwo references584NNSreference .585SENT. And586CCand I587PPI ...588:... I589PPI agree590VVPagree it591PPit ...592:... it593PPit 's594VBZbe not595RBnot a596DTa free-standing597JJfree-standing argument598NNargument ,599,, but600CCbut the601DTthe point602NNpoint of603INof this604DTthis statement605NNstatement in606INin our607PP$our brief608NNbrief is609VBZbe ,610,, if611INif you612PPyou really613RBreally could614MDcould read615VVread Section616NPSection 14617CD@card@ (618(( e619NNe )620)) to621TOto encompass622VVencompass negligence623NNnegligence ,624,, then625RBthen you626PPyou could627MDcould n't628RBn't possibly629RBpossibly have630VHhave any631DTany private632JJprivate right633NNright of634INof action635NNaction .636SENT. Everything637NNEverything comes638VVZcome crumbling639VVGcrumble down640RPdown .641SENT. And642CCand we643PPwe ...644:... [JUSTICE BREYER]645LOC[JUSTICE BREYER] You646PPyou 're647VBPbe saying648VVGsay that649IN/thatthat ,650,, but651RBbut ,652,, I653PPI mean654VVPmean ,655,, I656PPI just657RBjust want658VVPwant to659TOto add660VVadd to661TOto what662WPwhat ...663:... [MR. GARRE]664LOC[MR. GARRE] Right665RBright .666SENT. [JUSTICE BREYER]667LOC[JUSTICE BREYER] ...668:... Justice669NPJustice Kagan670NPKagan said671VVDsay .672SENT. You673PPyou told674VVDtell the675DTthe Ninth676JJninth Circuit677NNcircuit ,678,, I679PPI take680VVPtake it681PPit ,682,, quote683VVquote ,684,, that685IN/thatthat your686PP$your client687NNclient did688VVDdo not689RBnot dispute690VVdispute that691IN/thatthat Section692NPSection 14693CD@card@ (694(( e695LSe )696)) provides697VVZprovide for698INfor a699DTa private700JJprivate right701NNright of702INof action703NNaction .704SENT. [MR. GARRE]705LOC[MR. GARRE] That706DTthat 's707VBZbe correct708JJcorrect .709SENT. And710CCand we711PPwe did712VVDdo that713DTthat ...714:... [JUSTICE BREYER]715LOC[JUSTICE BREYER] End716NNend quote717NNquote .718SENT. And719CCand then720RBthen later721RBRlater ,722,, you723PPyou add724VVPadd this725DTthis sentence726NNsentence that727WDTthat says728VVZsay ,729,, well730RBwell ,731,, if732INif we733PPwe 're734VBPbe wrong735JJwrong about736INabout negligence737NNnegligence ,738,, then739RBthen there740RBthere would741MDwould n't742RBn't be743VBbe a744DTa private745JJprivate right746NNright of747INof action748NNaction at749INat all750DTall .751SENT. I752PPI agree753VVPagree ,754,, that755WDTthat 's756VBZbe what757WPwhat the758DTthe sentence759NNsentence basically760RBbasically says761VVZsay ,762,, but763CCbut go764VVgo along765RPalong with766INwith ...767:... [MR. GARRE]768LOC[MR. GARRE] But769CCbut to770TOto your771PP$your ...772:... [JUSTICE BREYER]773LOC[JUSTICE BREYER] It774PPit 's775VBZbe the776DTthe same777JJsame question778NNquestion .779SENT. [MR. GARRE]780LOC[MR. GARRE] If781INif I782PPI could783MDcould address784VVaddress Justice785NPJustice Breyer786NPBreyer 's787POS's point788NNpoint just789RBjust quickly790RBquickly ,791,, we792PPwe did793VVDdo say794VVsay at795INat the796DTthe panel797NNpanel stage798NNstage that799IN/thatthat we800PPwe did801VVDdo not802RBnot dispute803VVdispute the804DTthe existence805NNexistence of806INof the807DTthe private808JJprivate right809NNright because810INbecause ,811,, of812INof course813NNcourse ,814,, we815PPwe could816MDcould n't817RBn't ;818:; Ninth819JJninth Circuit820NPCircuit precedent821NNprecedent had822VHDhave recognized823VVNrecognize that824DTthat right825NNright .826SENT. We827PPwe did828VVDdo not829RBnot ,830,, I831PPI think832VVPthink it833PPit 's834VBZbe important835JJimportant to836TOto add837VVadd ,838,, concede839VVPconcede the840DTthe existence841NNexistence of842INof a843DTa private844JJprivate right845NNright .846SENT. I847PPI think848VVPthink there849EXthere 's850VBZbe a851DTa difference852NNdifference between853INbetween saying854VVGsay we855PPwe do856VVPdo n't857RBn't dispute858VVdispute it859PPit and860CCand we861PPwe agree862VVPagree with863INwith it864PPit .865SENT. Now866RBnow ,867,, I868PPI 'm869VBPbe sorry870JJsorry ,871,, Justice872NPJustice Kagan873NPKagan .874SENT. [JUSTICE KAGAN]875LOC[JUSTICE KAGAN] Well876UHwell ,877,, I878PPI think879VVPthink you880PPyou ...881:... it882PPit 's883VBZbe the884DTthe same885JJsame question886NNquestion .887SENT. [MR. GARRE]888LOC[MR. GARRE] Right889RBright .890SENT. Right891RBright .892SENT. And893CCand ...894:... and895CCand ,896,, of897INof course898NNcourse ,899,, more900RBRmore broadly901RBbroadly ,902,, under903INunder this904DTthis Court905NPCourt 's906POS's precedents907NNSprecedent ,908,, we909PPwe would910MDwould say911VVsay clearly912RBclearly this913DTthis Court914NPCourt has915VHZhave discretion916NNdiscretion to917TOto reach918VVreach the919DTthe broader920JJRbroad issue921NNissue .922SENT. I923PPI mean924VVPmean ,925,, Central926NPCentral Bank927NPBank really928RBreally could929MDcould n't930RBn't be931VBbe more932JJRmore on933INon point934NNpoint ...935:... [JUSTICE SOTOMAYOR]936LOC[JUSTICE SOTOMAYOR] You937PPyou answered938VVDanswer ...939:... you940PPyou answered941VVDanswer discretion942NNdiscretion ,943,, but944CCbut you945PPyou do946VVPdo n't947RBn't answer948VVanswer why949WRBwhy .950SENT. Are951VBPbe n't952RBn't we953PPwe rewarding954VVGreward you955PPyou ...956:... rewarding957VVGreward you958PPyou for959INfor not960RBnot raising961VVGraise it962PPit adequately963RBadequately below964RBbelow ,965,, rewarding966VVGreward you967PPyou for968INfor mentioning969VVGmention it970PPit in971INin two972CDtwo sentences973NNSsentence in974INin your975PP$your cert976NNcert petition977NNpetition and978CCand not979RBnot asking980VVGask us981PPus to982TOto take983VVtake it984PPit as985INas a986DTa separate987JJseparate question988NNquestion presented989VVDpresent ?990SENT? Where991WRBwhere should992MDshould we993PPwe draw994VVdraw the995DTthe line996NNline as997INas to998TOto when999WRBwhen we1000PPwe stop1001VVPstop rewarding1002JJrewarding counsel1003NNcounsel for1004INfor changing1005VVGchange or1006CCor moving1007VVGmove the1008DTthe ball1009NNball on1010INon cert1011NNcert grounds1012NNSground ?1013SENT? [MR. GARRE]1014LOC[MR. GARRE] Well1015UHwell ,1016,, there1017EXthere was1018VBDbe no1019DTno strategic1020JJstrategic gamesmanship1021NNgamesmanship here1022RBhere ,1023,, Justice1024NPJustice Sotomayor1025NPSotomayor .1026SENT. We1027PPwe ...1028:... the1029DTthe ...1030:... the1031DTthe broader1032JJRbroad argument1033NNargument ,1034,, as1035INas even1036RBeven my1037PP$my friend1038NNfriend concedes1039VVZconcede ,1040,, is1041VBZbe fairly1042RBfairly included1043VVNinclude within1044INwithin the1045DTthe question1046NNquestion presented1047VVDpresent .1048SENT. You1049PPyou look1050VVPlook at1051INat page1052NNpage 201053CD@card@ of1054INof our1055PP$our cert1056NNcert petition1057NNpetition ,1058,, it1059PPit was1060VBDbe very1061RBvery explicitly1062RBexplicitly raised1063VVNraise ...1064:... [JUSTICE SOTOMAYOR]1065LOC[JUSTICE SOTOMAYOR] You1066PPyou 're1067VBPbe not1068RBnot dealing1069VVGdeal with1070INwith what1071WPwhat I1072PPI just1073RBjust asked1074VVDask ,1075,, which1076WDTwhich is1077VBZbe ...1078:... [MR. GARRE]1079LOC[MR. GARRE] The1080DTthe ...1081:... the1082DTthe broader1083JJRbroad issue1084NNissue is1085VBZbe this1086DTthis Court1087NNcourt should1088MDshould ...1089:... [JUSTICE SOTOMAYOR]1090LOC[JUSTICE SOTOMAYOR] ...1091:... you1092PPyou could1093MDcould write1094VVwrite almost1095RBalmost any1096DTany question1097NNquestion and1098CCand throw1099VVthrow the1100DTthe kitchen1101NNkitchen sink1102NNsink if1103INif you1104PPyou choose1105VVPchoose .1106SENT. The1107DTthe question1108NNquestion is1109VBZbe ...1110:... you1111PPyou did1112VVDdo n't1113RBn't raise1114VVraise it1115PPit as1116INas a1117DTa separate1118JJseparate part1119NNpart of1120INof your1121PP$your cert1122NNcert petition1123NNpetition ;1124:; you1125PPyou did1126VVDdo n't1127RBn't raise1128VVraise it1129PPit below1130RBbelow ...1131:... why1132WRBwhy should1133MDshould we1134PPwe reward1135VVreward you1136PPyou ?1137SENT? [MR. GARRE]1138LOC[MR. GARRE] Okay1139NPOkay .1140SENT. First1141JJfirst of1142INof all1143DTall ,1144,, we1145PPwe did1146VVDdo argue1147VVargue it1148PPit in1149INin our1150PP$our cert1151NNcert petition1152NNpetition .1153SENT. But1154CCbut ...1155:... but1156CCbut ,1157,, as1158RBas to1159TOto your1160PP$your broader1161JJRbroad question1162NNquestion ,1163,, Justice1164NPJustice Sotomayor1165NPSotomayor ,1166,, you1167PPyou should1168MDshould do1169VVdo just1170RBjust as1171INas you1172PPyou did1173VVDdo in1174INin the1175DTthe Central1176NPCentral Bank1177NPBank case1178NNcase in1179INin order1180NNorder to1181TOto provide1182VVprovide for1183INfor the1184DTthe intelligent1185JJintelligent resolution1186NNresolution of1187INof this1188DTthis question1189NNquestion .1190SENT. Whether1191INwhether or1192CCor not1193RBnot ...1194:... [JUSTICE SOTOMAYOR]1195LOC[JUSTICE SOTOMAYOR] I1196PPI was1197VBDbe n't1198RBn't here1199RBhere .1200SENT. I1201PPI might1202MDmight have1203VHhave taken1204VVNtake a1205DTa different1206JJdifferent position1207NNposition .1208SENT. Why1209WRBwhy ...1210:... [MR. GARRE]1211LOC[MR. GARRE] Well1212UHWell ,1213,, and1214CCand ...1215:... and1216CCand the1217DTthe dissenters1218NNSdissenter obviously1219RBobviously did1220VVDdo .1221SENT. [JUSTICE SOTOMAYOR]1222LOC[JUSTICE SOTOMAYOR] ...1223:... why1224WRBwhy should1225MDshould we1226PPwe reward1227VVreward ...1228:... [MR. GARRE]1229LOC[MR. GARRE] And1230CCand the1231DTthe reason1232NNreason is1233VBZbe ,1234,, is1235VBZbe because1236INbecause this1237DTthis is1238VBZbe an1239DTan issue1240NNissue that1241WDTthat is1242VBZbe interdependent1243JJinterdependent with1244INwith the1245DTthe question1246NNquestion of1247INof whether1248INwhether or1249CCor not1250RBnot there1251EXthere could1252MDcould be1253VBbe inferred1254VVNinfer private1255JJprivate right1256NNright of1257INof action1258NNaction for1259INfor negligence1260NNnegligence .1261SENT. It1262PPit would1263MDwould be1264VBbe silly1265JJsilly for1266INfor this1267DTthis Court1268NPCourt to1269TOto say1270VVsay there1271EXthere can1272MDcan be1273VBbe inferred1274VVNinfer right1275RBright for1276INfor negligence1277NNnegligence ,1278,, but1279CCbut ...1280:... but1281CCbut the1282DTthe ...1283:... but1284CCbut everybody1285NNeverybody would1286MDwould recognize1287VVrecognize ,1288,, I1289PPI think1290VVPthink ,1291,, that1292IN/thatthat there1293EXthere is1294VBZbe no1295DTno ...1296:... [JUSTICE SOTOMAYOR]1297LOC[JUSTICE SOTOMAYOR] That1298DTthat ...1299:... that1300WDTthat 's1301VBZbe what1302WPwhat the1303DTthe SE1304FWse ...1305:... that1306WDTthat 's1307VBZbe what1308WPwhat the1309DTthe government1310NNgovernment says1311VVZsay ,1312,, that1313IN/thatthat there1314EXthere is1315VBZbe .1316SENT. [MR. GARRE]1317LOC[MR. GARRE] Well1318UHWell ,1319,, the1320DTthe government1321NNgovernment says1322VVZsay there1323EXthere 's1324VBZbe no1325DTno private1326JJprivate right1327NNright of1328INof action1329NNaction at1330INat all1331DTall .1332SENT. The1333DTthe courts1334NNScourt below1335RBbelow agree1336VVPagree with1337INwith that1338DTthat .1339SENT. [JUSTICE SOTOMAYOR]1340LOC[JUSTICE SOTOMAYOR] No1341UHNo ,1342,, no1343UHno ,1344,, no1345UHno ,1346,, no1347UHno ,1348,, they1349PPthey say1350VVPsay that1351IN/thatthat the1352DTthe statute1353NNstatute involves1354VVZinvolve negligence1355NNnegligence .1356SENT. So1357RBso we1358PPwe can1359MDcan find1360VVfind that1361IN/thatthat it1362PPit involves1363VVZinvolve negligence1364NNnegligence and1365CCand leave1366VVleave for1367INfor another1368DTanother day1369NNday whether1370INwhether there1371EXthere 's1372VBZbe a1373DTa private1374JJprivate cause1375NNcause of1376INof action1377NNaction or1378CCor the1379DTthe right1380NNright only1381RBonly belongs1382VVZbelong to1383TOto the1384DTthe SE1385FWse ...1386:... to1387TOto the1388DTthe SEC1389NPSEC .1390SENT. [MR. GARRE]1391LOC[MR. GARRE] I1392PPI ...1393:... I1394PPI think1395VVPthink where1396WRBwhere I1397PPI would1398MDwould take1399VVtake issue1400NNissue with1401INwith that1402DTthat ,1403,, Justice1404NPJustice Sotomayor1405NPSotomayor ,1406,, is1407VBZbe ...1408:... is1409VBZbe the1410DTthe government1411NNgovernment ,1412,, in1413INin the1414DTthe first1415JJfirst part1416NNpart of1417INof the1418DTthe government1419NNgovernment 's1420POS's brief1421NNbrief ,1422,, I1423PPI understand1424VVPunderstand addressed1425VVNaddress the1426DTthe question1427NNquestion of1428INof what1429WPwhat would1430MDwould be1431VBbe the1432DTthe standard1433NNstandard in1434INin an1435DTan express1436JJexpress action1437NNaction brought1438VVNbring by1439INby the1440DTthe SEC1441NPSEC .1442SENT. I1443PPI do1444VVPdo n't1445RBn't really1446RBreally understand1447VVunderstand the1448DTthe government1449NNgovernment to1450TOto be1451VBbe saying1452VVGsay they1453PPthey think1454VVPthink that1455IN/thatthat in1456INin an1457DTan implied1458JJimplied private1459JJprivate right1460NNright of1461INof action1462NNaction ,1463,, if1464INif it1465PPit exists1466VVZexist ,1467,, you1468PPyou could1469MDcould have1470VHhave claims1471NNSclaim for1472INfor negligence1473NNnegligence .1474SENT. They1475PPthey sort1476VVPsort of1477INof artfully1478RBartfully dodged1479VVNdodge that1480IN/thatthat question1481NNquestion and1482CCand ultimately1483RBultimately ground1484VVDgrind their1485PP$their brief1486NNbrief on1487INon the1488DTthe broader1489JJRbroad position1490NNposition ,1491,, which1492WDTwhich we1493PPwe very1494RBvery much1495RBmuch agree1496VVagree with1497INwith ...1498:... [JUSTICE SOTOMAYOR]1499LOC[JUSTICE SOTOMAYOR] They1500PPthey 'll1501MDwill let1502VVlet us1503PPus know1504VVknow .1505SENT. [MR. GARRE]1506LOC[MR. GARRE] ...1507:... that1508IN/thatthat there1509EXthere 's1510VBZbe simply1511RBsimply no1512DTno private1513JJprivate right1514NNright of1515INof action1516NNaction at1517INat all1518DTall .1519SENT. And1520CCand so1521INso I1522PPI ...1523:... so1524RBso I1525PPI think1526VVPthink ,1527,, you1528PPyou know1529VVPknow ,1530,, again1531RBagain ,1532,, to1533TOto answer1534VVanswer your1535PP$your question1536NNquestion ,1537,, we1538PPwe would1539MDwould take1540VVtake issue1541NNissue with1542INwith the1543DTthe notion1544NNnotion that1545IN/thatthat there1546EXthere was1547VBDbe gamesmanship1548NNgamesmanship here1549RBhere .1550SENT. We1551PPwe ...1552:... we1553PPwe were1554VBDbe not1555RBnot required1556VVNrequire to1557TOto raise1558VVraise it1559PPit at1560INat the1561DTthe panel1562NNpanel stage1563NNstage when1564WRBwhen we1565PPwe were1566VBDbe bound1567VVNbind by1568INby the1569DTthe Ninth1570JJninth Circu1571NPCircu it1572PPit 's1573VBZbe precedent1574JJprecedent .1575SENT. We1576PPwe did1577VVDdo flag1578VVflag it1579PPit in1580INin our1581PP$our petition1582NNpetition for1583INfor rehearing1584NNrehearing .1585SENT. We1586PPwe very1587RBvery much1588JJmuch ...1589:... [JUSTICE GINSBURG]1590LOC[JUSTICE GINSBURG] If1591INif you1592PPyou had1593VHDhave ...1594:... if1595INif you1596PPyou had1597VHDhave made1598VVNmake it1599PPit an1600DTan explicit1601JJexplicit question1602NNquestion ,1603,, there1604EXthere 's1605VBZbe no1606DTno circuit1607NNcircuit split1608NNsplit on1609INon the1610DTthe question1611NNquestion ,1612,, is1613VBZbe there1614RBthere ?1615SENT? [MR. GARRE]1616LOC[MR. GARRE] There1617EXthere 's1618VBZbe not1619RBnot ,1620,, and1621CCand nor1622CCnor was1623VBDbe there1624RBthere in1625INin the1626DTthe Central1627NPCentral Bank1628NPBank case1629NNcase .1630SENT. In1631INin that1632DTthat case1633NNcase ,1634,, as1635INas Justice1636NPJustice Stevens1637NPStevens pointed1638VVDpoint out1639RPout in1640INin his1641PP$his dissent1642NNdissent ,1643,, there1644EXthere were1645VBDbe hundreds1646NNShundred of1647INof judicial1648JJjudicial and1649CCand administrative1650JJadministrative decisions1651NNSdecision recognizing1652VVGrecognize an1653DTan implied1654JJimplied private1655JJprivate right1656NNright of1657INof action1658NNaction for1659INfor aiding1660VVGaid and1661CCand abetting1662VVGabet under1663INunder Rule1664NPRule 10b-51665NP10b-5 .1666SENT. But1667CCbut this1668DTthis Court1669NPCourt applied1670VVDapply its1671PP$its precedents1672NNSprecedent ,1673,, including1674VVGinclude its1675PP$its more1676JJRmore modern1677JJmodern precedents1678NNSprecedent ,1679,, looked1680VVDlook to1681TOto the1682DTthe language1683NNlanguage of1684INof Section1685NPSection 101686CD@card@ (1687(( b1688LSb )1689)) ,1690,, Rule1691NPRule 10b-51692NP10b-5 ,1693,, and1694CCand held1695VVDhold that1696IN/thatthat there1697EXthere could1698MDcould be1699VBbe no1700DTno private1701JJprivate right1702NNright of1703INof action1704NNaction implied1705VVNimply for1706INfor aiding1707VVGaid and1708CCand abetting1709VVGabet .1710SENT. And1711CCand the1712DTthe same1713JJsame analysis1714NNanalysis here1715RBhere ,1716,, indisputably1717RBindisputably ,1718,, I1719PPI think1720VVPthink ,1721,, leads1722VVZlead to1723TOto the1724DTthe conclusion1725NNconclusion that1726IN/thatthat there1727EXthere is1728VBZbe no1729DTno implied1730JJimplied private1731JJprivate right1732NNright of1733INof action1734NNaction under1735INunder Section1736NPSection (1737(( e1738NNe )1739)) .1740SENT. My1741PP$my ...1742:... my1743PP$my ...1744:... my1745PP$my friends1746NNSfriend over1747INover here1748RBhere ...1749:... I1750PPI ...1751:... I1752PPI take1753VVPtake page1754NNpage 441755CD@card@ of1756INof their1757PP$their brief1758NNbrief as1759RBas to1760TOto not1761RBnot ...1762:... as1763RBas to1764TOto concede1765VVconcede that1766IN/thatthat they1767PPthey cannot1768MDcan point1769VVpoint to1770TOto any1771DTany rights-creating1772VVGrights-creating language1773NNlanguage in1774INin Section1775NPSection 141776CD@card@ (1777(( e1778NNe )1779)) .1780SENT. And1781CCand that1782DTthat 's1783VBZbe because1784INbecause it1785PPit 's1786VBZbe framed1787VVNframe explicitly1788RBexplicitly as1789INas a1790DTa prohibition1791NNprohibition on1792INon conduct1793NNconduct ,1794,, not1795RBnot like1796INlike Title1797NPTitle IX1798NPIX ,1799,, for1800INfor example1801NNexample ,1802,, something1803NNsomething that1804WDTthat is1805VBZbe designed1806VVNdesign to1807TOto ...1808:... to1809TOto address1810VVaddress the1811DTthe benefited1812VVNbenefit class1813NNclass .1814SENT. [JUSTICE GINSBURG]1815LOC[JUSTICE GINSBURG] That1816DTthat 's1817VBZbe true1818JJtrue ...1819:... that1820WDTthat 's1821VBZbe true1822JJtrue of1823INof 141824CD@card@ (1825(( a1826DTa )1827)) also1828RBalso .1829SENT. [MR. GARRE]1830LOC[MR. GARRE] It1831PPit is1832VBZbe .1833SENT. [JUSTICE GINSBURG]1834LOC[JUSTICE GINSBURG] And1835CCand ...1836:... and1837CCand under1838INunder 141839CD@card@ (1840(( a1841DTa )1842)) ,1843,, there1844EXthere is1845VBZbe a1846DTa private1847JJprivate right1848NNright of1849INof action1850NNaction .1851SENT. [MR. GARRE]1852LOC[MR. GARRE] Thanks1853NNSThank to1854TOto Borak1855NNborak .1856SENT. And1857CCand Borak1858NNborak ,1859,, as1860INas this1861DTthis Court1862NPCourt pointed1863VVDpoint out1864RPout in1865INin the1866DTthe Sandoval1867NPSandoval case1868NNcase emphatically1869RBemphatically ,1870,, was1871VBDbe a1872DTa product1873NNproduct of1874INof a1875DTa different1876JJdifferent era1877NNera that1878IN/thatthat this1879DTthis Court1880NPCourt has1881VHZhave disavowed1882VVNdisavow .1883SENT. [JUSTICE GINSBURG]1884LOC[JUSTICE GINSBURG] But1885CCbut even1886RBeven so1887RBso ,1888,, it1889PPit 's1890VBZbe ...1891:... it1892PPit 's1893VBZbe alive1894JJalive for1895INfor ...1896:... under1897INunder 141898CD@card@ (1899(( a1900DTa )1901)) .1902SENT. And1903CCand is1904VBZbe it1905PPit rational1906JJrational to1907TOto distinguish1908VVdistinguish 141909CD@card@ (1910(( a1911DTa )1912)) from1913INfrom 141914CD@card@ (1915(( e1916NNe )1917)) for1918INfor private1919JJprivate right1920JJright purposes1921NNSpurpose ?1922SENT? If1923INif you1924PPyou have1925VHPhave 141926CD@card@ (1927(( a1928DTa )1929)) ,1930,, the1931DTthe context1932NNcontext of1933INof that1934WDTthat is1935VBZbe proxy1936JJproxy statements1937NNSstatement ?1938SENT? [MR. GARRE]1939LOC[MR. GARRE] Yes1940NPYes ,1941,, Your1942PP$your Honor1943NPHonor .1944SENT. [JUSTICE GINSBURG]1945LOC[JUSTICE GINSBURG] So1946INso proxy1947JJproxy statements1948NNSstatement go1949VVPgo one1950CDone way1951NNway .1952SENT. Tender1953NNtender offers1954NNSoffer go1955VVPgo the1956DTthe other1957JJother ?1958SENT? [MR. GARRE]1959LOC[MR. GARRE] So1960INso we1961PPwe do1962VVPdo think1963VVthink it1964PPit 's1965VBZbe rational1966JJrational ,1967,, Your1968PP$your Honor1969NPHonor .1970SENT. First1971JJfirst of1972INof all1973DTall ,1974,, 141975CD@card@ (1976(( e1977NNe )1978)) has1979VHZhave language1980NNlanguage that1981WDTthat could1982MDcould scarcely1983RBscarcely be1984VBbe more1985RBRmore different1986JJdifferent than1987INthan 141988CD@card@ (1989(( a1990DTa )1991)) .1992SENT. So1993RBso you1994PPyou would1995MDwould n't1996RBn't look1997VVlook at1998INat the1999DTthe language2000NNlanguage of2001INof 142002CD@card@ (2003(( e2004NNe )2005)) and2006CCand say2007VVsay ,2008,, oh2009UHoh ,2010,, they2011PPthey must2012MDmust have2013VHhave meant2014VVNmean what2015WPwhat Congress2016NPCongress said2017VVDsay in2018INin 142019CD@card@ (2020(( a2021DTa )2022)) .2023SENT. It2024PPit 's2025VBZbe different2026JJdifferent .2027SENT. Second2028JJsecond of2029INof all2030DTall ,2031,, the2032DTthe whole2033JJwhole argument2034NNargument that2035IN/thatthat because2036INbecause we2037PPwe 've2038VHPhave got2039VVNget an2040DTan implied2041JJimplied private2042JJprivate right2043NNright of2044INof action2045NNaction under2046INunder 142047CD@card@ (2048(( a2049DTa )2050)) ,2051,, we2052PPwe need2053VVPneed to2054TOto have2055VHhave one2056CDone under2057INunder 142058CD@card@ (2059(( e2060NNe )2061)) is2062VBZbe exactly2063RBexactly the2064DTthe argument2065NNargument that2066IN/thatthat this2067DTthis Court2068NPCourt rejected2069VVDreject in2070INin Sandoval2071NPSandoval as2072RBas to2073TOto Borak2074NNborak .2075SENT. The2076DTthe Court2077NPCourt ...2078:... there2079EXthere 's2080VBZbe a2081DTa duty2082NNduty upon2083INupon the2084DTthe courts2085NNScourt to2086TOto effectuate2087VVeffectuate congressional2088JJcongressional purpose2089NNpurpose .2090SENT. Congress2091NPCongress saw2092VVDsee a2093DTa gap2094NNgap with2095INwith respect2096NNrespect to2097TOto statements2098NNSstatement in2099INin connection2100NNconnection with2101INwith tender2102NNtender offers2103NNSoffer in2104INin 19682105CD@card@ ;2106:; it2107PPit filled2108VVDfill that2109DTthat gap2110NNgap by2111INby adding2112VVGadd additional2113JJadditional disclosure2114NNdisclosure requirements2115NNSrequirement under2116INunder Section2117NPSection 142118CD@card@ (2119(( e2120NNe )2121)) for2122INfor tender2123NNtender offers2124NNSoffer .2125SENT. If2126INif you2127PPyou want2128VVPwant to2129TOto look2130VVlook at2131INat the2132DTthe legislative2133JJlegislative history2134NNhistory ,2135,, Congress2136NPCongress had2137VHDhave in2138INin mind2139NNmind public2140JJpublic enforcement2141NNenforcement of2142INof that2143DTthat provision2144NNprovision .2145SENT. There2146EXthere 's2147VBZbe no2148DTno basis2149NNbasis for2150INfor this2151DTthis Court2152NPCourt to2153TOto essentially2154RBessentially do2155VVdo the2156DTthe deed2157NNdeed again2158RBagain as2159INas it2160PPit did2161VVDdo in2162INin Borak2163NNborak ,2164,, to2165TOto do2166VVdo it2167PPit again2168RBagain here2169RBhere ,2170,, simply2171RBsimply because2172INbecause Borak2173NNborak reached2174VVDreach that2175DTthat result2176NNresult on2177INon a2178DTa completely2179RBcompletely different2180JJdifferent regime2181NNregime than2182INthan this2183DTthis Court2184NPCourt applies2185VVZapply today2186NNtoday .2187SENT. [JUSTICE KAGAN]2188LOC[JUSTICE KAGAN] But2189CCbut Sandoval2190NPSandoval ,2191,, I2192PPI think2193VVPthink ,2194,, makes2195VVZmake clear2196JJclear ,2197,, Mr2198NPMr .2199SENT. Garre2200NPGarre ,2201,, that2202WDTthat we2203PPwe 're2204VBPbe not2205RBnot ...2206:... I2207PPI mean2208VVPmean ,2209,, the2210DTthe first2211JJfirst question2212NNquestion is2213VBZbe ,2214,, is2215VBZbe there2216RBthere rights-creating2217VVGrights-creating language2218NNlanguage ?2219SENT? [MR. GARRE]2220LOC[MR. GARRE] Right2221NPRight .2222SENT. [JUSTICE KAGAN]2223LOC[JUSTICE KAGAN] But2224CCbut that2225IN/thatthat beyond2226INbeyond that2227DTthat ,2228,, even2229RBeven if2230INif there2231EXthere 's2232VBZbe not2233RBnot rights-creating2234VVGrights-creating language2235NNlanguage ,2236,, if2237INif there2238EXthere 's2239VBZbe legal2240JJlegal context2241NNcontext that2242WDTthat indicates2243VVZindicate that2244IN/thatthat Congress2245NPCongress meant2246VVDmean to2247TOto create2248VVcreate private2249JJprivate rights2250NNSright of2251INof action2252NNaction ,2253,, then2254RBthen we2255PPwe should2256MDshould take2257VVtake that2258DTthat legal2259JJlegal context2260NNcontext into2261INinto account2262NNaccount .2263SENT. And2264CCand ...2265:... and2266CCand ,2267,, here2268RBhere ,2269,, it2270PPit seems2271VVZseem that2272IN/thatthat there2273EXthere are2274VBPbe at2275INat least2276JJSleast two2277CDtwo features2278NNSfeature of2279INof the2280DTthe legal2281JJlegal context2282NNcontext .2283SENT. One2284PPone is2285VBZbe the2286DTthe one2287CDone that2288IN/thatthat Justice2289NPJustice Ginsburg2290NPGinsburg said2291VVDsay ,2292,, which2293WDTwhich is2294VBZbe this2295DTthis was2296VBDbe meant2297VVNmean to2298TOto create2299VVcreate a2300DTa gap2301NNgap as2302RBas to2303TOto treating2304VVGtreat tender2305NNtender offers2306VVZoffer the2307DTthe same2308JJsame way2309NNway as2310INas using2311VVGuse proxy2312JJproxy statements2313NNSstatement with2314INwith respect2315NNrespect to2316TOto mergers2317NNSmerger ,2318,, and2319CCand Congress2320NPCongress gave2321VVDgive no2322DTno indication2323NNindication that2324IN/thatthat it2325PPit wanted2326VVDwant to2327TOto treat2328VVtreat those2329DTthose differently2330RBdifferently .2331SENT. Quite2332PDTQuite the2333DTthe opposite2334NNopposite ,2335,, that2336IN/thatthat it2337PPit was2338VBDbe gap-filling2339VVGgap-filling and2340CCand a2341DTa way2342NNway to2343TOto unify2344VVunify the2345DTthe field2346NNfield .2347SENT. And2348CCand the2349DTthe second2350NNsecond is2351VBZbe that2352IN/thatthat Congress2353NPCongress uses2354VVZuse the2355DTthe 10b-52356JJ10b-5 language2357NNlanguage after2358INafter every2359DTevery court2360NNcourt has2361VHZhave decided2362VVNdecide that2363IN/thatthat 10b-52364NP10b-5 creates2365VVZcreate a2366DTa private2367JJprivate right2368NNright of2369INof action2370NNaction .2371SENT. And2372CCand I2373PPI think2374VVPthink given2375VVNgive those2376DTthose two2377CDtwo things2378NNSthing ,2379,, Sandoval2380NPSandoval does2381VVZdo n't2382RBn't say2383VVsay ,2384,, throw2385VVthrow out2386RPout the2387DTthe statutory2388JJstatutory interpretation2389NNinterpretation toolbox2390NNtoolbox and2391CCand just2392RBjust look2393VVlook to2394TOto whether2395INwhether there2396EXthere 's2397VBZbe rights-creating2398VVGrights-creating language2399NNlanguage .2400SENT. It2401PPit says2402VVZsay ,2403,, be2404VBbe a2405DTa sensible2406JJsensible statutory2407JJstatutory interpreter2408NNinterpreter .2409SENT. And2410CCand a2411DTa sensible2412JJsensible statutory2413JJstatutory interpreter2414NNinterpreter would2415MDwould consider2416VVconsider both2417DTboth of2418INof those2419DTthose two2420CDtwo things2421NNSthing ,2422,, would2423MDwould n't2424RBn't they2425PPthey ?2426SENT? [MR. GARRE]2427LOC[MR. GARRE] Not2428RBnot here2429RBhere ,2430,, Your2431PP$your Honor2432NPHonor .2433SENT. And2434CCand I2435PPI think2436VVPthink what2437WPwhat 's2438VBZbe missing2439VVGmiss from2440INfrom that2441DTthat summary2442NNsummary ,2443,, which2444WDTwhich I2445PPI would2446MDwould ...2447:... I2448PPI would2449MDwould agree2450VVagree with2451INwith in2452INin some2453DTsome respects2454NNSrespect is2455VBZbe that2456IN/thatthat Congress2457NPCongress ...2458:... or2459CCor ...2460:... or2461CCor this2462DTthis Court2463NPCourt in2464INin Sandoval2465NPSandoval said2466VVDsay context2467NNcontext was2468VBDbe relevant2469JJrelevant only2470RBonly insofar2471RBinsofar as2472INas it2473PPit shed2474VVDshed light2475NNlight on2476INon text2477NNtext .2478SENT. And2479CCand so2480RBso ,2481,, here2482RBhere ,2483,, I2484PPI think2485VVPthink the2486DTthe most2487RBSmost important2488JJimportant point2489NNpoint as2490RBas to2491TOto that2492DTthat question2493NNquestion is2494VBZbe that2495IN/thatthat the2496DTthe text2497NNtext of2498INof 142499CD@card@ (2500(( e2501NNe )2502)) is2503VBZbe ...2504:... [JUSTICE KAVANAUGH]2505LOC[JUSTICE KAVANAUGH] What2506WPWhat about2507INabout the2508DTthe ...2509:... [JUSTICE SOTOMAYOR]2510LOC[JUSTICE SOTOMAYOR] I2511PPI 'm2512VBPbe sorry2513JJsorry ,2514,, do2515VVPdo n't2516RBn't ...2517:... are2518VBPbe n't2519RBn't we2520PPwe looking2521VVGlook to2522TOto the2523DTthe text2524NNtext for2525INfor what2526WPwhat congressional2527JJcongressional intent2528NNintent is2529VBZbe ?2530SENT? And2531CCand to2532TOto the2533DTthe extent2534NNextent that2535IN/thatthat that2536DTthat 's2537VBZbe the2538DTthe issue2539NNissue ,2540,, what2541WPwhat did2542VVDdo Congress2543NPCongress intend2544VVPintend with2545INwith this2546DTthis language2547NNlanguage ?2548SENT? [MR. GARRE]2549LOC[MR. GARRE] Well2550UHWell ...2551:... [JUSTICE SOTOMAYOR]2552LOC[JUSTICE SOTOMAYOR] Is2553VBZbe ...2554:... are2555VBPbe n't2556RBn't all2557RBall the2558DTthe facts2559NNSfact that2560IN/thatthat Justice2561NPJustice Kagan2562NPKagan put2563VVDput forth2564RBforth more2565RBRmore meaningful2566JJmeaningful in2567INin terms2568NNSterm of2569INof Congress2570NPCongress 's2571POS's intent2572NNintent ?2573SENT? Because2574RBbecause ,2575,, if2576INif Congress2577NPCongress did2578VVDdo n't2579RBn't agree2580VVagree with2581INwith this2582DTthis ,2583,, it2584PPit had2585VHDhave a2586DTa whole2587JJwhole lot2588NNlot of2589INof years2590NNSyear to2591TOto change2592VVchange things2593NNSthing around2594RBaround .2595SENT. But2596CCbut it2597PPit has2598VHZhave n't2599RBn't .2600SENT. [MR. GARRE]2601LOC[MR. GARRE] Well2602UHWell ,2603,, if2604INif ...2605:... if2606INif that2607DTthat 's2608VBZbe where2609WRBwhere you2610PPyou 're2611VBPbe coming2612VVGcome from2613INfrom ,2614,, Justice2615NPJustice Sotomayor2616NPSotomayor ,2617,, then2618RBthen you2619PPyou should2620MDshould agree2621VVagree with2622INwith us2623PPus that2624IN/thatthat there2625EXthere 's2626VBZbe no2627DTno implied2628JJimplied private2629JJprivate right2630NNright of2631INof action2632NNaction for2633INfor negligence2634NNnegligence because2635INbecause the2636DTthe status2637FWstatus quo2638FWquo was2639VBDbe courts2640NNScourt had2641VHDhave an2642DTan implied2643JJimplied right2644NNright of2645INof action2646NNaction under2647INunder Section2648NPSection 142649CD@card@ (2650(( e2651NNe )2652)) for2653INfor scienter2654RBscienter .2655SENT. So2656RBso ,2657,, if2658INif that2659WDTthat 's2660VBZbe where2661WRBwhere you2662PPyou 're2663VBPbe coming2664VVGcome from2665INfrom ,2666,, then2667RBthen you2668PPyou should2669MDshould decide2670VVdecide the2671DTthe case2672NNcase on2673INon the2674DTthe narrower2675JJRnarrow ground2676NNground and2677CCand ...2678:... [JUSTICE SOTOMAYOR]2679LOC[JUSTICE SOTOMAYOR] They2680PPthey had2681VHDhave it2682PPit under2683INunder 192684CD@card@ 142685CD@card@ (2686(( a2687DTa )2688)) or2689CCor ...2690:... [MR. GARRE]2691LOC[MR. GARRE] ...2692:... and2693CCand hold2694VVPhold that2695IN/thatthat 142696CD@card@ ...2697:... any2698DTany implied2699JJimplied right2700NNright of2701INof action2702NNaction requires2703VVZrequire scienter2704RBscienter .2705SENT. [JUSTICE KAVANAUGH]2706LOC[JUSTICE KAVANAUGH] Are2707NPAre ...2708:... [MR. GARRE]2709LOC[MR. GARRE] But2710CCbut ,2711,, as2712RBas ...2713:... as2714RBas to2715TOto Borak2716NNborak and2717CCand the2718DTthe ...2719:... I2720PPI 'm2721VBPbe sorry2722JJsorry ,2723,, Justice2724NPJustice Kavanaugh2725NPKavanaugh .2726SENT. [JUSTICE KAVANAUGH]2727LOC[JUSTICE KAVANAUGH] Keep2728NPKeep going2729VVGgo .2730SENT. [MR. GARRE]2731LOC[MR. GARRE] As2732RBas to2733TOto Borak2734NNborak and2735CCand the2736DTthe timing2737NNtiming ,2738,, again2739RBagain ,2740,, this2741DTthis is2742VBZbe the2743DTthe same2744JJsame argument2745NNargument that2746WDTthat was2747VBDbe rejected2748VVNreject in2749INin Sandoval2750NPSandoval .2751SENT. In2752INin Sandoval2753NPSandoval ,2754,, the2755DTthe argument2756NNargument was2757VBDbe ,2758,, well2759UHwell ,2760,, wait2761VVwait a2762DTa second2763NNsecond .2764SENT. When2765WRBwhen Congress2766NPCongress was2767VBDbe debating2768VVGdebate Title2769NPTitle VI2770NPVI ,2771,, this2772DTthis Court2773NPCourt decided2774VVDdecide Borak2775NNborak .2776SENT. So2777RBso ,2778,, clearly2779RBclearly ,2780,, Congress2781NPCongress had2782VHDhave in2783INin mind2784NNmind Borak2785NNborak when2786WRBwhen it2787PPit was2788VBDbe passing2789VVGpass Title2790NPTitle VI2791NPVI ,2792,, and2793CCand that2794IN/thatthat context2795NNcontext has2796VHZhave to2797TOto inform2798VVinform our2799PP$our construction2800NNconstruction of2801INof Title2802NPTitle VI2803NPVI and2804CCand the2805DTthe regulations2806NNSregulation thereunder2807RBthereunder .2808SENT. And2809CCand this2810DTthis Court2811NPCourt emphatically2812RBemphatically rejected2813VVDreject that2814IN/thatthat in2815INin Sandoval2816NPSandoval .2817SENT. This2818DTthis is2819VBZbe the2820DTthe same2821JJsame ...2822:... [JUSTICE KAGAN]2823LOC[JUSTICE KAGAN] But2824CCbut Sandoval2825NPSandoval accepted2826VVDaccept the2827DTthe Cannon2828NPCannon principle2829NNprinciple ,2830,, right2831NNright ,2832,, which2833WDTwhich is2834VBZbe that2835IN/thatthat if2836INif Congress2837NPCongress specifically2838RBspecifically takes2839VVZtake language2840NNlanguage that2841WDTthat 's2842VHZhave been2843VBNbe held2844VVNhold to2845TOto create2846VVcreate a2847DTa private2848JJprivate right2849NNright of2850INof action2851NNaction and2852CCand replicates2853VVZreplicate that2854DTthat language2855NNlanguage ,2856,, then2857RBthen that2858IN/thatthat counts2859NNScount as2860INas a2861DTa pretty2862JJpretty strong2863JJstrong indicator2864NNindicator that2865IN/thatthat Congress2866NPCongress has2867VHZhave meant2868VVNmean for2869INfor the2870DTthe same2871JJsame result2872NNresult to2873TOto obtain2874VVobtain .2875SENT. [MR. GARRE]2876LOC[MR. GARRE] It2877PPit mentioned2878VVDmention that2879IN/thatthat in2880INin the2881DTthe context2882NNcontext of2883INof Cannon2884NPCannon ,2885,, but2886CCbut here2887RBhere 's2888VBZbe why2889WRBwhy that2890DTthat does2891VVZdo n't2892RBn't work2893VVwork here2894RBhere .2895SENT. And2896CCand you2897PPyou referred2898VVDrefer to2899TOto the2900DTthe text2901NNtext of2902INof Rule2903NPRule 102904CD@card@ (2905(( b2906LSb )2907)) .2908SENT. And2909CCand I2910PPI agree2911VVPagree with2912INwith you2913PPyou .2914SENT. Congress2915NPCongress transplanted2916VVDtransplant the2917DTthe text2918NNtext from2919INfrom Rule2920NPRule 102921CD@card@ (2922(( b2923LSb )2924)) into2925INinto Section2926NPSection 142927CD@card@ (2928(( e2929NNe )2930)) .2931SENT. But2932CCbut the2933DTthe implied2934JJimplied right2935NNright of2936INof action2937NNaction to2938TOto enforce2939VVenforce Rule2940NPRule 10b-52941NP10b-5 comes2942VVZcome from2943INfrom Section2944NPSection 102945CD@card@ (2946(( b2947LSb )2948)) of2949INof the2950DTthe Securities2951NPSSecurities and2952CCand Exchange2953NPExchange Act2954NPAct because2955INbecause ,2956,, as2957INas this2958DTthis Court2959NPCourt said2960VVDsay in2961INin Sandoval2962NPSandoval ,2963,, regulations2964NNSregulation can2965MDcan 't2966RB't create2967VVcreate implied2968JJimplied rights2969NNSright of2970INof action2971NNaction ,2972,, statutes2973NNSstatute do2974VVPdo .2975SENT. When2976WRBwhen you2977PPyou look2978VVPlook at2979INat Section2980NPSection 102981CD@card@ (2982(( b2983LSb )2984)) ,2985,, it2986PPit 's2987VBZbe completely2988RBcompletely different2989JJdifferent than2990INthan Section2991NPSection 142992CD@card@ (2993(( e2994NNe )2995)) .2996SENT. So2997RBso there2998EXthere 's2999VBZbe no3000DTno basis3001NNbasis to3002TOto say3003VVsay ,3004,, well3005RBwell ,3006,, because3007INbecause Section3008NNsection ...3009:... [JUSTICE KAGAN]3010LOC[JUSTICE KAGAN] But3011CCbut 103012CD@card@ (3013(( b3014LSb )3015)) makes3016VVZmake clear3017JJclear that3018IN/thatthat it3019PPit 's3020VBZbe ...3021:... even3022RBeven the3023DTthe statutory3024JJstatutory language3025NNlanguage in3026INin 103027CD@card@ (3028(( b3029LSb )3030)) makes3031VVZmake clear3032JJclear that3033IN/thatthat it3034PPit 's3035VBZbe going3036VVGgo to3037TOto take3038VVtake its3039PP$its content3040NNcontent from3041INfrom the3042DTthe rules3043NNSrule and3044CCand regulations3045NNSregulation that3046WDTthat are3047VBPbe designed3048VVNdesign to3049TOto implement3050VVimplement it3051PPit .3052SENT. And3053CCand then3054RBthen 10b-53055JJ10b-5 comes3056VVZcome along3057RBalong and3058CCand essentially3059RBessentially gives3060VVZgive 103061CD@card@ (3062(( b3063LSb )3064)) its3065PP$its content3066NNcontent ,3067,, and3068CCand all3069DTall of3070INof these3071DTthese courts3072NNScourt go3073VVPgo the3074DTthe exact3075JJexact same3076JJsame way3077NNway ,3078,, whether3079INwhether it3080PPit was3081VBDbe right3082JJright or3083CCor wrong3084JJwrong ,3085,, and3086CCand say3087VVPsay private3088JJprivate right3089NNright of3090INof action3091NNaction follows3092VVZfollow from3093INfrom that3094DTthat .3095SENT. And3096CCand then3097RBthen Congress3098NPCongress replicates3099VVZreplicate that3100DTthat language3101NNlanguage .3102SENT. [MR. GARRE]3103LOC[MR. GARRE] Well3104UHWell ,3105,, this3106DTthis Court3107NPCourt in3108INin 19713109CD@card@ ,3110,, which3111WDTwhich was3112VBDbe after3113INafter the3114DTthe time3115NNtime that3116IN/thatthat Congress3117NPCongress passed3118VVDpass the3119DTthe Williams3120NPWilliams Act3121NPAct in3122INin Section3123NPSection 143124CD@card@ (3125(( e3126NNe )3127)) ,3128,, finally3129RBfinally acquiesced3130VVNacquiesce in3131INin recognizing3132VVGrecognize an3133DTan implied3134JJimplied private3135JJprivate right3136NNright under3137INunder Section3138NPSection 103139CD@card@ (3140(( b3141LSb )3142)) for3143INfor Rule3144NPRule 10b-53145JJ10b-5 violations3146NNSviolation .3147SENT. And3148CCand no3149DTno one3150CDone is3151VBZbe disputing3152VVGdispute that3153IN/thatthat here3154RBhere .3155SENT. But3156CCbut I3157PPI ...3158:... but3159CCbut I3160PPI think3161VVPthink the3162DTthe question3163NNquestion is3164VBZbe whether3165INwhether this3166DTthis Court3167NPCourt ...3168:... [JUSTICE KAGAN]3169LOC[JUSTICE KAGAN] But3170CCbut that3171DTthat was3172VBDbe the3173DTthe framework3174NNframework in3175INin the3176DTthe same3177JJsame way3178NNway that3179IN/thatthat that3180DTthat was3181VBDbe the3182DTthe Cannon3183NPCannon framework3184NNframework ,3185,, is3186VBZbe that3187IN/thatthat Congress3188NPCongress is3189VBZbe looking3190VVGlook at3191INat something3192NNsomething ,3193,, a3194DTa particular3195JJparticular set3196NNset of3197INof words3198NNSword that3199WDTthat has3200VHZhave been3201VBNbe found3202VVNfind uniformly3203RBuniformly to3204TOto create3205VVcreate a3206DTa private3207JJprivate right3208NNright of3209INof action3210NNaction ,3211,, and3212CCand then3213RBthen Congress3214NPCongress writes3215VVZwrite those3216DTthose same3217JJsame words3218NNSword .3219SENT. [MR. GARRE]3220LOC[MR. GARRE] Again3221RBagain ,3222,, I3223PPI would3224MDwould disagree3225VVdisagree with3226INwith you3227PPyou because3228INbecause the3229DTthe words3230NNSword that3231WDTthat matter3232VVPmatter for3233INfor purposes3234NNSpurpose of3235INof an3236DTan implied3237JJimplied right3238NNright of3239INof action3240NNaction under3241INunder 103242CD@card@ (3243(( b3244LSb )3245)) are3246VBPbe 103247CD@card@ (3248(( b3249LSb )3250)) .3251SENT. There3252RBthere ...3253:... and3254CCand those3255DTthose words3256NNSword are3257VBPbe completely3258RBcompletely different3259JJdifferent than3260INthan the3261DTthe words3262NNSword that3263WDTthat Congress3264NPCongress used3265VVDuse in3266INin Section3267NPSection 143268CD@card@ (3269(( e3270NNe )3271)) .3272SENT. [JUSTICE KAGAN]3273LOC[JUSTICE KAGAN] I3274PPI mean3275VVPmean ,3276,, that3277WDTthat just3278RBjust seems3279VVZseem incredibly3280RBincredibly artificial3281JJartificial ,3282,, Mr3283NPMr .3284SENT. Garre3285NPGarre ,3286,, because3287INbecause 10b-53288JJ10b-5 had3289VHDhave been3290VBNbe created3291VVNcreate and3292CCand everybody3293NNeverybody understood3294VVDunderstand that3295IN/thatthat 10b-53296NP10b-5 was3297VBDbe the3298DTthe governing3299VVGgovern standard3300NNstandard and3301CCand that3302IN/thatthat private3303JJprivate rights3304NNSright of3305INof action3306NNaction went3307VVDgo along3308RPalong with3309INwith that3310DTthat governing3311VVGgovern standard3312NNstandard .3313SENT. [MR. GARRE]3314LOC[MR. GARRE] Under3315INunder ...3316:... if3317INif that3318WDTthat 's3319VBZbe true3320JJtrue ,3321,, it3322PPit 's3323VBZbe under3324INunder the3325DTthe Borak-type3326NPBorak-type framework3327NNframework that3328IN/thatthat courts3329NNScourt would3330MDwould supply3331VVsupply remedies3332NNSremedy when3333WRBwhen Congress3334NPCongress did3335VVDdo n't3336RBn't ,3337,, but3338CCbut this3339DTthis Court3340NPCourt was3341VBDbe very3342RBvery clear3343JJclear about3344INabout this3345DTthis in3346INin Sandoval3347NPSandoval ,3348,, and3349CCand I3350PPI believe3351VVPbelieve other3352JJother cases3353NNScase ,3354,, where3355WRBwhere it3356PPit said3357VVDsay that3358IN/thatthat regulations3359NNSregulation can3360MDcan 't3361RB't create3362VVcreate implied3363JJimplied private3364JJprivate rights3365NNSright .3366SENT. Statutes3367NNSstatute do3368VVPdo .3369SENT. And3370CCand this3371DTthis Court3372NPCourt in3373INin Ernst3374NPErnst &3375CC& Ernst3376NPErnst said3377VVDsay that3378IN/thatthat Section3379NPSection 103380CD@card@ (3381(( b3382LSb )3383)) was3384VBDbe the3385DTthe source3386NNsource of3387INof the3388DTthe implied3389JJimplied private3390JJprivate right3391NNright .3392SENT. [JUSTICE KAVANAUGH]3393LOC[JUSTICE KAVANAUGH] So3394RBso ...3395:... so3396RBso ,3397,, on3398INon Justice3399NPJustice Kagan3400NPKagan 's3401POS's questions3402NNSquestion ,3403,, to3404TOto pick3405VVpick up3406RPup on3407INon those3408DTthose ,3409,, in3410INin Sandoval3411NPSandoval ,3412,, in3413INin distinguishing3414VVGdistinguish the3415DTthe prior3416JJprior cases3417NNScase ,3418,, it3419PPit said3420VVDsay two3421CDtwo of3422INof those3423DTthose involved3424VVNinvolve Congress3425NPCongress 's3426POS's enactment3427NNenactment or3428CCor reenactment3429NNreenactment of3430INof the3431DTthe verbatim3432JJverbatim statutory3433JJstatutory text3434NNtext that3435IN/thatthat courts3436NNScourt had3437VHDhave previously3438RBpreviously interpreted3439VVNinterpret to3440TOto create3441VVcreate a3442DTa private3443JJprivate right3444NNright of3445INof action3446NNaction .3447SENT. [MR. GARRE]3448LOC[MR. GARRE] Yes3449NPYes .3450SENT. [JUSTICE KAVANAUGH]3451LOC[JUSTICE KAVANAUGH] Now3452RBnow it3453PPit sounds3454VVZsound like3455INlike the3456DTthe way3457NNway you3458PPyou respond3459VVPrespond to3460TOto that3461DTthat is3462VBZbe to3463TOto say3464VVsay statutory3465JJstatutory text3466NNtext as3467INas compared3468VVNcompare to3469TOto regulatory3470JJregulatory text3471NNtext .3472SENT. That3473DTthat 's3474VBZbe the3475DTthe sole3476JJsole distinction3477NNdistinction ?3478SENT? [MR. GARRE]3479LOC[MR. GARRE] Right3480RBright .3481SENT. Because3482RBbecause ,3483,, I3484PPI mean3485VVPmean ,3486,, in3487INin Title3488NPTitle IX3489NPIX ,3490,, I3491PPI mean3492VVPmean ,3493,, the3494DTthe Court3495NPCourt referred3496VVDrefer to3497TOto ...3498:... in3499INin Sandoval3500NPSandoval to3501TOto Cannon3502NPCannon .3503SENT. By3504INby the3505DTthe way3506NNway ,3507,, I3508PPI ...3509:... I3510PPI ...3511:... I3512PPI understand3513VVPunderstand Sandoval3514NPSandoval to3515TOto be3516VBbe explaining3517VVGexplain Cannon3518NPCannon ,3519,, not3520RBnot necessarily3521RBnecessarily to3522TOto be3523VBbe ,3524,, you3525PPyou know3526VVPknow ,3527,, expanding3528VVGexpand it3529PPit .3530SENT. [JUSTICE KAVANAUGH]3531LOC[JUSTICE KAVANAUGH] Well3532UHWell ,3533,, that3534WDTthat 's3535VBZbe a3536DTa ...3537:... that3538WDTthat 's3539VBZbe a3540DTa question3541NNquestion of3542INof how3543WRBhow we3544PPwe interpret3545VVPinterpret that3546DTthat sentence3547NNsentence in3548INin Sandoval3549NPSandoval .3550SENT. [MR. GARRE]3551LOC[MR. GARRE] Right3552NPRight .3553SENT. Right3554RBright .3555SENT. And3556CCand so3557RBso ...3558:... [JUSTICE KAVANAUGH]3559LOC[JUSTICE KAVANAUGH] But3560CCbut ,3561,, if3562INif we3563PPwe interpret3564VVPinterpret that3565DTthat sentence3566NNsentence in3567INin Sandoval3568NPSandoval as3569INas setting3570VVGset a3571DTa principle3572NNprinciple ,3573,, which3574WDTwhich I3575PPI take3576VVPtake your3577PP$your point3578NNpoint on3579INon that3580DTthat ,3581,, I3582PPI understand3583VVPunderstand that3584IN/thatthat ,3585,, but3586CCbut if3587INif we3588PPwe do3589VVPdo ,3590,, then3591RBthen your3592PP$your distinction3593NNdistinction of3594INof it3595PPit is3596VBZbe statutory3597JJstatutory text3598NNtext versus3599CCversus regulatory3600JJregulatory text3601NNtext ?3602SENT? [MR. GARRE]3603LOC[MR. GARRE] Right3604NPRight .3605SENT. This3606DTthis case3607NNcase would3608MDwould be3609VBbe an3610DTan expansion3611NNexpansion of3612INof what3613WPwhat the3614DTthe Court3615NPCourt said3616VVDsay in3617INin Sandoval3618NPSandoval because3619INbecause ...3620:... [JUSTICE KAGAN]3621LOC[JUSTICE KAGAN] But3622CCbut even3623RBeven though3624INthough Rule3625NPRule 103626CD@card@ (3627(( b3628LSb )3629)) 's3630VBZbe substantive3631JJsubstantive scope3632NNscope is3633VBZbe defined3634VVNdefine in3635INin terms3636NNSterm of3637INof regulations3638NNSregulation ,3639,, by3640INby the3641DTthe terms3642NNSterm of3643INof 103644CD@card@ (3645(( b3646LSb )3647)) itself3648PPitself .3649SENT. [MR. GARRE]3650LOC[MR. GARRE] I3651PPI would3652MDwould say3653VVsay it3654PPit 's3655VBZbe a3656DTa different3657JJdifferent statute3658NNstatute .3659SENT. And3660CCand this3661DTthis is3662VBZbe important3663JJimportant because3664INbecause ,3665,, if3666INif you3667PPyou look3668VVPlook at3669INat 143670CD@card@ (3671(( a3672DTa )3673)) and3674CCand 143675CD@card@ (3676(( e3677NNe )3678)) ,3679,, 143680CD@card@ (3681(( a3682DTa )3683)) gives3684VVZgive the3685DTthe SEC3686NPSEC authority3687NNauthority to3688TOto pass3689VVpass rules3690NNSrule .3691SENT. The3692DTthe SEC3693NPSEC has3694VHZhave been3695VBNbe very3696RBvery judicious3697JJjudicious in3698INin ...3699:... in3700INin ...3701:... in3702INin describing3703VVGdescribe situations3704NNSsituation where3705WRBwhere the3706DTthe violation3707NNviolation is3708VBZbe very3709RBvery limited3710JJlimited and3711CCand so3712RBso they've3713NNthey've ...3714:... they3715PPthey 've3716VHPhave established3717VVNestablish kind3718NNkind of3719INof a3720DTa break3721NNbreak on3722INon the3723DTthe sorts3724NNSsort of3725INof things3726NNSthing that3727WDTthat can3728MDcan be3729VBbe violations3730NNSviolation .3731SENT. [JUSTICE KAVANAUGH]3732LOC[JUSTICE KAVANAUGH] Can3733MDcan I3734PPI ...3735:... [MR. GARRE]3736LOC[MR. GARRE] For3737INfor ...3738:... yes3739UHyes .3740SENT. [JUSTICE KAVANAUGH]3741LOC[JUSTICE KAVANAUGH] Go3742VVgo on3743RPon .3744SENT. Sorry3745RBsorry .3746SENT. [MR. GARRE]3747LOC[MR. GARRE] No3748UHNo ,3749,, no3750UHno ,3751,, please3752UHplease .3753SENT. [JUSTICE KAVANAUGH]3754LOC[JUSTICE KAVANAUGH] Can3755MDcan I3756PPI get3757VVget your3758PP$your broader3759JJRbroad argument3760NNargument ...3761:... [MR. GARRE]3762LOC[MR. GARRE] Sure3763NPSure .3764SENT. [JUSTICE KAVANAUGH]3765LOC[JUSTICE KAVANAUGH] ...3766:... about3767RBabout why3768WRBwhy this3769DTthis sentence3770NNsentence in3771INin Sandoval3772NPSandoval you3773PPyou said3774VVDsay ...3775:... [MR. GARRE]3776LOC[MR. GARRE] Because3777INbecause Sandoval3778NPSandoval ,3779,, if3780INif you3781PPyou continue3782VVPcontinue down3783RBdown to3784TOto the3785DTthe end3786NNend of3787INof that3788DTthat paragraph3789NNparagraph on3790INon Cannon3791NPCannon ,3792,, said3793VVDsay context3794NNcontext is3795VBZbe relevant3796JJrelevant ,3797,, but3798CCbut it3799PPit 's3800VBZbe only3801RBonly relevant3802JJrelevant as3803INas it3804PPit informs3805VVZinform text3806NNtext .3807SENT. And3808CCand there3809EXthere 's3810VBZbe nothing3811NNnothing about3812INabout the3813DTthe context3814NNcontext of3815INof Borak3816NNborak or3817CCor 143818CD@card@ (3819(( a3820DTa )3821)) that3822WDTthat informs3823VVZinform 143824CD@card@ (3825(( e3826NNe )3827)) because3828INbecause 143829CD@card@ (3830(( e3831NNe )3832)) is3833VBZbe written3834VVNwrite completely3835RBcompletely different3836JJdifferent than3837INthan 143838CD@card@ (3839(( a3840DTa )3841)) .3842SENT. That3843DTthat ...3844:... [JUSTICE KAGAN]3845LOC[JUSTICE KAGAN] But3846CCbut ...3847:... but3848CCbut I3849PPI guess3850VVPguess do3851VVdo n't3852RBn't you3853PPyou think3854VVPthink that3855IN/thatthat the3856DTthe point3857NNpoint of3858INof Sandoval3859NPSandoval and3860CCand ...3861:... and3862CCand ...3863:... and3864CCand it3865PPit should3866MDshould be3867VBbe the3868DTthe point3869NNpoint of3870INof all3871PDTall our3872PP$our decisions3873NNSdecision is3874VBZbe ,3875,, yes3876UHyes ,3877,, we3878PPwe want3879VVPwant to3880TOto know3881VVknow what3882WPwhat Congress3883NPCongress was3884VBDbe intending3885VVGintend to3886TOto do3887VVdo here3888RBhere ,3889,, but3890CCbut we3891PPwe 're3892VBPbe not3893RBnot going3894VVGgo to3895TOto throw3896VVthrow out3897RPout the3898DTthe whole3899JJwhole statutory3900JJstatutory interpretation3901NNinterpretation toolbox3902NNtoolbox ,3903,, except3904INexcept for3905INfor the3906DTthe text3907NNtext ,3908,, because3909INbecause sometimes3910RBsometimes context3911NNcontext matters3912VVZmatter a3913DTa great3914JJgreat deal3915NNdeal in3916INin understanding3917NNunderstanding text3918NNtext .3919SENT. And3920CCand what3921WPwhat we3922PPwe really3923RBreally want3924VVPwant to3925TOto know3926VVknow is3927VBZbe ,3928,, what3929WPwhat did3930VVDdo those3931DTthose words3932NNSword mean3933VVPmean when3934WRBwhen people3935NNSpeople enacted3936VVDenact those3937DTthose words3938NNSword at3939INat that3940DTthat time3941NNtime ?3942SENT? And3943CCand for3944INfor us3945PPus to3946TOto be3947VBbe able3948JJable to3949TOto answer3950VVanswer that3951DTthat question3952NNquestion ,3953,, the3954DTthe statutory3955JJstatutory context3956NNcontext is3957VBZbe extremely3958RBextremely important3959JJimportant ,3960,, is3961VBZbe n't3962RBn't it3963PPit ?3964SENT? [MR. GARRE]3965LOC[MR. GARRE] I3966PPI think3967VVPthink Sandoval3968NPSandoval answers3969VVZanswer that3970IN/thatthat by3971INby saying3972VVGsay statutory3973JJstatutory context3974NNcontext informs3975VVZinform ...3976:... is3977VBZbe relevant3978JJrelevant as3979INas it3980PPit informs3981VVZinform text3982NNtext .3983SENT. But3984CCbut I3985PPI think3986VVPthink the3987DTthe broader3988JJRbroad point3989NNpoint here3990RBhere is3991VBZbe that3992IN/thatthat this3993DTthis Court3994NPCourt has3995VHZhave been3996VBNbe ...3997:... made3998VVDmake very3999RBvery clear4000VVclear that4001IN/thatthat when4002WRBwhen it4003PPit comes4004VVZcome to4005TOto recognizing4006VVGrecognize implied4007JJimplied private4008JJprivate rights4009NNSright ,4010,, this4011DTthis is4012VBZbe a4013DTa very4014RBvery special4015JJspecial ,4016,, perilous4017JJperilous endeavor4018NNendeavor ,4019,, and4020CCand so4021RBso there4022EXthere are4023VBPbe very4024RBvery explicit4025JJexplicit limits4026NNSlimit on4027INon when4028WRBwhen the4029DTthe Court4030NPCourt is4031VBZbe going4032VVGgo to4033TOto do4034VVdo it4035PPit .4036SENT. And4037CCand it4038PPit 's4039VBZbe not4040RBnot going4041VVGgo to4042TOto look4043VVlook at4044INat this4045DTthis question4046NNquestion as4047INas it4048PPit might4049MDmight any4050DTany other4051JJother routine4052JJroutine statutory4053JJstatutory interpretation4054NNinterpretation question4055NNquestion .4056SENT. It4057PPit 's4058VBZbe going4059VVGgo to4060TOto look4061VVlook first4062JJfirst ,4063,, are4064VBPbe ...4065:... are4066VBPbe there4067RBthere rights-creating4068VVGrights-creating language4069NNlanguage ?4070SENT? Here4071RBhere ,4072,, everybody4073NNeverybody agrees4074VVZagree ,4075,, not4076RBnot there4077RBthere .4078SENT. Second4079RBsecond ,4080,, is4081VBZbe there4082RBthere any4083DTany indication4084NNindication to4085TOto believe4086VVbelieve that4087IN/thatthat Congress4088NPCongress intended4089VVDintend a4090DTa private4091JJprivate remedy4092NNremedy ?4093SENT? And4094CCand if4095INif you4096PPyou look4097VVPlook at4098INat that4099DTthat question4100NNquestion here4101RBhere ,4102,, same4103JJsame answer4104NNanswer ,4105,, no4106RBno .4107SENT. Congress4108NPCongress clearly4109RBclearly ,4110,, in4111INin the4112DTthe securities4113NNSsecurity laws4114NNSlaw ,4115,, intended4116VVNintend public4117JJpublic enforcement4118NNenforcement .4119SENT. And4120CCand so4121INso what4122WPwhat are4123VBPbe we4124PPwe left4125VVNleave with4126INwith ?4127SENT? We4128PPwe 're4129VBPbe left4130VVNleave ...4131:... left4132VVNleave with4133INwith Borak4134NNborak ,4135,, which4136WDTwhich is4137VBZbe the4138DTthe heyday4139NNheyday of4140INof this4141DTthis Court4142NPCourt saying4143VVGsay courts4144NNScourt have4145VHPhave ...4146:... not4147RBnot only4148RBonly can4149MDcan but4150RBbut have4151VHhave a4152DTa duty4153NNduty to4154TOto alert4155VValert themselves4156PPthemselves to4157TOto filling4158VVGfill Congress4159NPCongress 's4160POS's purposes4161NNSpurpose after4162INafter you4163PPyou agree4164VVPagree to4165TOto open4166VVopen the4167DTthe ...4168:... [JUSTICE KAGAN]4169LOC[JUSTICE KAGAN] So4170CCso tell4171VVtell me4172PPme if4173INif I'm4174NPI'm ...4175:... if4176INif I4177PPI 'm4178VBPbe misinterpreting4179VVGmisinterpret what4180WPwhat you4181PPyou 're4182VBPbe saying4183VVGsay ,4184,, but4185CCbut I4186PPI had4187VHDhave thought4188VVNthink that4189IN/thatthat the4190DTthe ...4191:... that4192IN/thatthat the4193DTthe line4194NNline that4195IN/thatthat Sandoval4196NPSandoval drew4197VVDdraw was4198VBDbe ,4199,, look4200VVlook ,4201,, before4202INbefore now4203RBnow ,4204,, what4205WPwhat Congress4206NPCongress did4207VVDdo ...4208:... excuse4209VVexcuse me4210PPme ,4211,, what4212WPwhat the4213DTthe courts4214NNScourt did4215VVDdo was4216VBDbe they4217PPthey just4218RBjust basically4219RBbasically said4220VVNsay :4221:: Oh4222UHoh ,4223,, look4224VVlook ,4225,, if4226INif a4227DTa ...4228:... if4229INif a4230DTa ...4231:... if4232INif a4233DTa private4234JJprivate right4235NNright of4236INof action4237NNaction kind4238NNkind of4239INof fits4240NNSfit with4241INwith the4242DTthe purpose4243NNpurpose of4244INof a4245DTa statute4246NNstatute as4247INas broadly4248RBbroadly defined4249VVNdefine ,4250,, then4251RBthen we4252PPwe should4253MDshould have4254VHhave a4255DTa private4256JJprivate right4257NNright of4258INof action4259NNaction .4260SENT. And4261CCand this4262DTthis Court4263NPCourt said4264VVDsay :4265:: Absolutely4266RBabsolutely not4267RBnot ,4268,, to4269TOto that4270DTthat endeavor4271NNendeavor .4272SENT. But4273CCbut ...4274:... and4275CCand said4276VVDsay it4277PPit has4278VHZhave to4279TOto be4280VBbe a4281DTa question4282NNquestion of4283INof statutory4284JJstatutory interpretation4285NNinterpretation ,4286,, what4287WPwhat did4288VVDdo Congress4289NPCongress intend4290VVintend when4291WRBwhen it4292PPit was4293VBDbe passing4294VVGpass that4295DTthat act4296NNact ?4297SENT? But4298CCbut you4299PPyou 're4300VBPbe suggesting4301VVGsuggest something4302NNsomething more4303RBRmore .4304SENT. You4305PPyou 're4306VBPbe suggesting4307VVGsuggest that4308IN/thatthat the4309DTthe usual4310JJusual tools4311NNStool of4312INof statutory4313JJstatutory interpretation4314NNinterpretation that4315IN/thatthat we4316PPwe use4317VVPuse sort4318RBsort of4319INof go4320VVgo out4321RPout the4322DTthe window4323NNwindow when4324WRBwhen there4325EXthere 's4326VBZbe a4327DTa ...4328:... a4329DTa ...4330:... less4331JJRless context4332NNcontext ,4333,, you4334PPyou know4335VVPknow ,4336,, all4337RBall of4338INof a4339DTa sudden4340JJsudden context4341NNcontext does4342VVZdo n't4343RBn't matter4344VVmatter ;4345:; we4346PPwe just4347RBjust look4348VVPlook mechanically4349RBmechanically at4350INat the4351DTthe words4352NNSword because4353INbecause this4354DTthis is4355VBZbe such4356PDTsuch a4357DTa fraught4358JJfraught inquiry4359NNinquiry .4360SENT. Am4361VBPbe I4362PPI ...4363:... am4364VBPbe I4365PPI reading4366VVGread you4367PPyou right4368RBright ?4369SENT? [MR. GARRE]4370LOC[MR. GARRE] No4371NPNo .4372SENT. I4373PPI mean4374VVPmean ,4375,, tools4376NNStool of4377INof statutory4378JJstatutory construction4379NNconstruction are4380VBPbe pertinent4381JJpertinent in4382INin answering4383VVGanswer the4384DTthe questions4385NNSquestion under4386INunder this4387DTthis Court4388NPCourt 's4389POS's decision4390NNdecision in4391INin Sandoval4392NPSandoval .4393SENT. Is4394VBZbe there4395RBthere rights-creating4396VVGrights-creating language4397NNlanguage ?4398SENT? Here4399RBhere ,4400,, everybody4401NNeverybody agrees4402VVZagree that4403IN/thatthat there4404EXthere 's4405VBZbe not4406RBnot .4407SENT. Is4408VBZbe there4409RBthere a4410DTa reason4411NNreason to4412TOto believe4413VVbelieve that4414IN/thatthat Congress4415NPCongress otherwise4416RBotherwise intended4417VVDintend a4418DTa private4419JJprivate remedy4420NNremedy ?4421SENT? No4422UHNo .4423SENT. And4424CCand ...4425:... and4426CCand I4427PPI would4428MDwould say4429VVsay here4430RBhere what4431WPwhat 's4432VBZbe unprecedented4433JJunprecedented about4434INabout this4435DTthis case4436NNcase is4437VBZbe that4438IN/thatthat we4439PPwe 're4440VBPbe not4441RBnot aware4442JJaware of4443INof a4444DTa single4445JJsingle instance4446NNinstance in4447INin which4448WDTwhich this4449DTthis Court4450NPCourt has4451VHZhave ever4452RBever implied4453VVNimply or4454CCor recognized4455VVNrecognize an4456DTan implied4457JJimplied right4458NNright of4459INof action4460NNaction that4461IN/thatthat the4462DTthe enforcement4463NNenforcement agency4464NNagency itself4465PPitself did4466VVDdo n't4467RBn't recognize4468VVrecognize .4469SENT. And4470CCand if4471INif you4472PPyou think4473VVPthink of4474INof this4475DTthis in4476INin a4477DTa Steel4478NPSteel Seizure4479NNseizure type4480NNtype framework4481NNframework ,4482,, to4483TOto the4484DTthe extent4485NNextent that4486IN/thatthat this4487DTthis Court4488NPCourt has4489VHZhave authority4490NNauthority to4491TOto recognize4492VVrecognize implied4493JJimplied private4494JJprivate rights4495NNSright at4496INat all4497DTall ,4498,, then4499RBthen surely4500RBsurely that4501IN/thatthat authority4502NNauthority is4503VBZbe at4504INat its4505PP$its lowest4506JJSlow ebb4507NNebb ...4508:... [JUSTICE GINSBURG]4509LOC[JUSTICE GINSBURG] Mister4510NPMister ...4511:... [MR. GARRE]4512LOC[MR. GARRE] ...4513:... where4514WRBwhere the4515DTthe government4516NNgovernment itself4517PPitself is4518VBZbe n't4519RBn't arguing4520VVGargue for4521INfor that4522DTthat .4523SENT. I4524PPI 'm4525VBPbe sorry4526JJsorry ,4527,, Justice4528NPJustice Ginsburg4529NPGinsburg .4530SENT. [JUSTICE GINSBURG]4531LOC[JUSTICE GINSBURG] Before4532INbefore ...4533:... your4534PP$your white4535JJwhite light4536NNlight is4537VBZbe on4538INon ,4539,, I4540PPI appreciate4541VVPappreciate that4542IN/thatthat ,4543,, but4544CCbut you4545PPyou presented4546VVDpresent one4547CDone question4548NNquestion clearly4549RBclearly ,4550,, and4551CCand that4552WDTthat was4553VBDbe scienter4554RBscienter versus4555INversus negligence4556NNnegligence .4557SENT. [MR. GARRE]4558LOC[MR. GARRE] Yes4559NPYes .4560SENT. [JUSTICE GINSBURG]4561LOC[JUSTICE GINSBURG] So4562INso I4563PPI 'd4564MDwould like4565VVlike you4566PPyou to4567TOto tell4568VVtell me4569PPme ,4570,, do4571VVPdo I4572PPI understand4573VVPunderstand you4574PPyou right4575JJright to4576TOto say4577VVsay not4578RBnot even4579RBeven the4580DTthe SEC4581NPSEC would4582MDwould have4583VHhave a4584DTa right4585NNright to4586TOto sue4587VVsue for4588INfor negligence4589NNnegligence under4590INunder 144591CD@card@ (4592(( e4593NNe )4594)) ,4595,, not4596RBnot even4597RBeven the4598DTthe SEC4599NPSEC ?4600SENT? [MR. GARRE]4601LOC[MR. GARRE] That4602DTthat 's4603VBZbe right4604JJright .4605SENT. And4606CCand we4607PPwe would4608MDwould point4609VVpoint you4610PPyou to4611TOto the4612DTthe Court4613NPCourt 's4614POS's decision4615NNdecision in4616INin Ernst4617NPErnst &4618CC& Ernst4619NPErnst ,4620,, where4621WRBwhere the4622DTthe Court4623NNcourt dealt4624VVNdeal with4625INwith this4626DTthis question4627NNquestion in4628INin the4629DTthe context4630NNcontext of4631INof an4632DTan implied4633JJimplied private4634JJprivate right4635NNright and4636CCand said4637VVDsay that4638IN/thatthat there4639EXthere 's4640VBZbe no4641DTno basis4642NNbasis for4643INfor interpreting4644VVGinterpret the4645DTthe similar4646JJsimilar language4647NNlanguage of4648INof Rule4649NNrule 10b-54650JJ10b-5 to4651TOto confer4652VVconfer negligence4653NNnegligence .4654SENT. And4655CCand to4656TOto your4657PP$your point4658NNpoint ,4659,, Justice4660NPJustice Kagan4661NPKagan ,4662,, if4663INif you4664PPyou approach4665VVPapproach this4666DTthis case4667NNcase from4668INfrom the4669DTthe standpoint4670NNstandpoint that4671IN/thatthat Congress4672NPCongress meant4673VVDmean to4674TOto lock4675VVlock in4676INin Rule4677NPRule 10b-54678NP10b-5 when4679WRBwhen it4680PPit used4681VVDuse ...4682:... when4683WRBwhen it4684PPit transplanted4685VVDtransplant language4686NNlanguage from4687INfrom 10b-54688JJ10b-5 in4689INin Section4690NPSection 144691CD@card@ (4692(( e4693NNe )4694)) ,4695,, then4696RBthen you4697PPyou should4698MDshould at4699INat least4700JJSleast reach4701VVreach the4702DTthe conclusion4703NNconclusion that4704IN/thatthat the4705DTthe Ninth4706JJninth Circuit4707NNcircuit had4708VHDhave no4709DTno basis4710NNbasis for4711INfor inferring4712VVGinfer a4713DTa private4714JJprivate right4715NNright of4716INof action4717NNaction for4718INfor negligence4719NNnegligence .4720SENT. [JUSTICE BREYER]4721LOC[JUSTICE BREYER] Why4722NPWhy ?4723SENT? Because4724RBbecause ,4725,, I4726PPI mean4727VVPmean ...4728:... sorry4729RBsorry ,4730,, because4731INbecause your4732PP$your time4733NNtime is4734VBZbe ...4735:... do4736VVPdo you4737PPyou want4738VVPwant to4739TOto answer4740VVanswer this4741DTthis when4742WRBwhen you4743PPyou get4744VVPget back4745RBback up4746RPup ?4747SENT? I4748PPI mean4749VVPmean ,4750,, look4751VVPlook ,4752,, the4753DTthe language4754NNlanguage of4755INof 144756CD@card@ (4757(( e4758NNe )4759)) that4760IN/thatthat we4761PPwe 're4762VBPbe talking4763VVGtalk about4764RBabout is4765VBZbe the4766DTthe same4767JJsame as4768INas the4769DTthe language4770NNlanguage of4771INof 10b-54772JJ10b-5 ,4773,, and4774CCand 10b-54775NP10b-5 copied4776VVDcopy its4777PP$its language4778NNlanguage from4779INfrom ...4780:... what4781WPwhat is4782VBZbe it4783PPit ...4784:... [MR. GARRE]4785LOC[MR. GARRE] Section4786NPSection 174787CD@card@ (4788(( a4789DTa )4790)) .4791SENT. [JUSTICE BREYER]4792LOC[JUSTICE BREYER] Yes4793NPYes ,4794,, 174795CD@card@ (4796(( a4797DTa )4798)) .4799SENT. Okay4800JJokay ?4801SENT? So4802RBso ...4803:... now4804RBnow we4805PPwe use4806VVPuse this4807DTthis language4808NNlanguage to4809TOto get4810VVget at4811INat proxy4812JJproxy statements4813NNSstatement ,4814,, do4815VVPdo n't4816RBn't we4817PPwe ?4818SENT? And4819CCand proxy4820JJproxy statements4821NNSstatement can4822MDcan be4823VBbe ways4824NNSway of4825INof taking4826VVGtake over4827INover a4828DTa company4829NNcompany .4830SENT. [MR. GARRE]4831LOC[MR. GARRE] Well4832UHWell ,4833,, proxy4834JJproxy statements4835NNSstatement ...4836:... [JUSTICE BREYER]4837LOC[JUSTICE BREYER] So4838RBso why4839WRBwhy would4840MDwould you4841PPyou want4842VVPwant to4843TOto have4844VHhave one4845PPone set4846VVNset of4847INof language4848NNlanguage meaning4849NNmeaning negligence4850NNnegligence ,4851,, where4852WRBwhere they4853PPthey try4854VVPtry to4855TOto take4856VVtake you4857PPyou over4858RPover by4859INby proxy4860JJproxy statements4861NNSstatement ,4862,, but4863CCbut a4864DTa different4865JJdifferent set4866NNset ...4867:... but4868CCbut exactly4869RBexactly the4870DTthe same4871JJsame words4872NNSword ,4873,, not4874RBnot negligence4875NNnegligence ,4876,, when4877WRBwhen they4878PPthey try4879VVPtry to4880TOto take4881VVtake you4882PPyou over4883RPover by4884INby a4885DTa tender4886NNtender offer4887NNoffer ?4888SENT? [MR. GARRE]4889LOC[MR. GARRE] Well4890UHWell ,4891,, in4892INin here4893RBhere we4894PPwe 're4895VBPbe talking4896VVGtalk about4897INabout the4898DTthe difference4899NNdifference between4900INbetween Rule4901NPRule 10b-54902NP10b-5 and4903CCand Section4904NPSection 144905CD@card@ (4906(( e4907NNe )4908)) ,4909,, and4910CCand both4911DTboth ,4912,, we4913PPwe would4914MDwould say4915VVsay ,4916,, require4917VVrequire scienter4918RBscienter .4919SENT. But4920CCbut what4921WPwhat I4922PPI would4923MDwould say4924VVsay is4925VBZbe that4926IN/thatthat when4927WRBwhen it4928PPit comes4929VVZcome into4930INinto policies4931NNSpolicy of4932INof negligence4933NNnegligence versus4934CCversus scienter4935RBscienter ,4936,, there4937EXthere should4938MDshould be4939VBbe a4940DTa real4941JJreal concern4942NNconcern on4943INon the4944DTthe part4945NNpart of4946INof this4947DTthis Court4948NNcourt that4949IN/thatthat interpreting4950VVGinterpret Section4951NPSection 144952CD@card@ (4953(( e4954NNe )4955)) to4956TOto go4957VVgo all4958PDTall the4959DTthe way4960NNway to4961TOto negligence4962NNnegligence ,4963,, which4964WDTwhich would4965MDwould be4966VBbe unprecedented4967JJunprecedented in4968INin the4969DTthe 50-year4970JJ50-year history4971NNhistory here4972RBhere ,4973,, would4974MDwould result4975VVresult in4976INin the4977DTthe dumping4978VVGdump of4979INof information4980NNinformation ,4981,, would4982MDwould be4983VBbe ...4984:... ultimately4985RBultimately be4986VBbe counterproductive4987JJcounterproductive .4988SENT. And4989CCand I4990PPI would4991MDwould ask4992VVask this4993DTthis Court4994NPCourt to4995TOto reserve4996VVreserve the4997DTthe remainder4998NNremainder of4999INof my5000PP$my time5001NNtime .5002SENT. [CHIEF JUSTICE ROBERTS]5003LOC[CHIEF JUSTICE ROBERTS] Thank5004VVthank you5005PPyou ,5006,, counsel5007NNcounsel .5008SENT. Ms5009NNMs .5010SENT. Ratner5011NPRatner .5012SENT.