Offensive Collateral Estoppel
Hypo: the SEC files a securities fraud claim against X. X loses. A class of private investors then files a class action against X for the same fraud. Is X bound by the adverse judgment against it?
Answer: Yes, X was a party that fully and fairly litigated the securities fraud claim against it in the first lawsuit. Therefore, it may not relitigate those claims or issues in the subsequent lawsuit. Accordingly the private investors will win on summary judgment b/c there is no longer any genuine issue of fact.