# kaal:claim:5583610-022

**Claim.** The common enterprise prong is the unresolved part of the analysis: vertical commonality may well be present through the merchant network, and inconsistent district court precedent leaves LER's status under this prong uncertain.

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

**Holds when.**

- horizontal and vertical commonality tests
- split district court authority

**Source quote.**

> However, there is some uncertainty on qualifying LER as a common enterprise given the inconsistent treatment and precedent in different district courts.

**From.** Wulf A. Kaal, *Liquid Equity Rewards in Corporate America* (2025), 3.2. U.S. Securities Regulation, page 12

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

**Verify.** sha256 of source PDF `2d73609d95ddb1573acc2a9e7af617fbe6283d6e591deb6317f6d5d804517c62` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards%20in%20Corporate%20America.pdf

**Topics.** law-and-legal-systems, securities-law

**Keywords.** common-enterprise, vertical-commonality, legal-uncertainty, howey-test

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