Vigman

This appeal requires us to decide how many bites at the apple the Securities Investor Protection Corporation (SIPC) can take.

Asserting subrogation to the rights of nonpurchasing customers of two failed broker-dealers, SIPC brought securities 1 and RICO 2 claims against Robert G. Holmes, Jr., and a cast of dozens who were accused of manipulating the stock of companies in which they had an interest. Among other manipulative devices SIPC complained about was “parking.”

After two unrelated trips to this circuit, 4 the district court granted summary judgment for Holmes on the ground that SIPC lacked standing as a purchaser or seller of securities, and had not shown a sufficient causal connection between Holmes’s acts and the losses SIPC sought to recover. We reversed, Securities Investor Protection Corp. v. Vigman, 908 F.2d 1461 (9th Cir.1990) (Vigman III), and then got reversed, Holmes v. Securities Investor Protection Corp., 503 U.S. 258 , 112 S.Ct. 1311 , 117 L.Ed.2d 532 (1992). The Supreme Court held that SIPC cannot recover from Holmes under RICO because the conspirators’ conduct did not proximately cause the nonpurchasing customers’ injury.

On remand, SIPC asked to go…