Corporate
Apr. 1, 2011
Disclosure Standard for Security Fraud Claims Muddled With Uncertainty
The U.S. Supreme Court refuses to create a clear path for companies to take when it comes to disclosure of nonpublic facts. By Michele D. Johnson and Colleen C. Smith of Latham & Watkins.
Many public companies might well prefer a bright-line rule delineating what sorts of non-public facts are or could be immaterial, and thus not subject to disclosure. In its recent Matrixx Initiatives Inc. v. Siracusano decision, the U.S. Supreme Court again declined to draw one.
A shareholder asserting a securities fraud claim must establish that the company made a statement that was misleading as to a m...
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