unless the controlling person had no knowledge of or reasonable grounds to believe in the existence of the facts by reason of which the liability of the controlled person is alleged to exist. 15 U.S.C. § 77o. 6 .Section 20(a) of the 1934 Act provides: Every person who, directly or indirectly, controls any person liable under any provision of this chapter or of any rule or regulation thereunder shall also be liable jointly and severally with and to the same extent as such controlled person to any person to whom such controlled person is liable, unless the controlling person acted in good faith and did not directly or indirectly induce the act or acts F.2d 873, 881 (7th Cir.1992) (applying Eighth Circuit’s test) with Brown v. Enstar Group, Inc., 84 F.3d 393, 396 & n. 6 (11th Cir. 1996) (<HOLDING>), cert, denied, — U.S. —, 117 S.Ct. 950, 136
holding a defendant is liable as a control person if the defendant had the power to control the general affairs of the entity primarily liable at the time the entity violated the securities laws but declining to decide whether power to control means simply abstract power to control or actual exercise of the power to control internal quotations omitted holding authority to control limits duty to control holding that to establish a prima facie case of control person liability a plaintiff must establish that the alleged control person actually participated in ie exercised control over the operations of the primary violator in general internal quotations omitted recognizing that court has inherent power to control the judicial business before it recognizing power of district courts to control movement of cases from filing to final disposition