Kimon Daifotis was the lead portfolio manager of the YieldPlus Fund. In August 2007, when YieldPlus was suffering massive, unprecedented redemptions, Daifotis held two conference calls in which he allegedly falsely stated that "we've got very, very, very slight negative flows" and that "outflows have been minimal." Daifotis also allegedly made misrepresentations in YieldPlus's written materials in which he was directly quoted or in which statements were directly attributed to him, including a September 2005 brochure and a Spring 2006 brochure. When Yield Plus investors sued Daifotis for damages caused by the alleged misstatements, Daifotis argued that he had not "made" the statements and, therefore, could not be liable under Securities Exchange Act Rule 10b-5. Did the court agree?
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