# kaal:claim:5454054-032

**Claim.** Because Landreth holds that instruments carrying equity attributes such as dividends or voting rights are securities, LER rewards cannot include any such features and must function as independent loyalty perks.

**Type.** condition  **Support.** argued

**Holds when.**

- United States securities law

**Source quote.**

> This is reinforced by SEC v. Landreth Timber Co. (1985), where the court held that stock sales are securities if they carry equity attributes like dividends or voting rights. Therefore, LER rewards cannot include such features.

**From.** Wulf A. Kaal, *Liquid Equity Rewards* (2025), Separation of Equity and Rewards, page 26

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

**Verify.** sha256 of source PDF `9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards.pdf

**Topics.** securities-law, systemic-risk, governance-design

**Keywords.** landreth, securities-classification, voting-rights, dividends

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