What are the consequences of a failure to state a claim under Section 10(b) of the Securities and Exchange Act?

Finally, Plaintiffs also allege control person liability under Section 20(a) of the Exchange Act. See 15 U.S.C. 78t(a). The district court held that Plaintiffs failure to state a claim under Section 10(b) precluded relief under Section 20(a). See SPA-29 (citing, inter alia , SEC v. First Jersey Sec., Inc. , 101 F.3d 1450, 1472 (2d Cir. 1996) ). Because we disagree with the district court's determination as to scienter, we also reverse the district court's dismissal of the Section 20(a) claims and remand for further proceedings consistent with this opinion.