Column: U.S. Supreme Court to decide if SEC disclosure violations are valid basis for shareholder fraud claims | Reuters

Securities class action defendants and their lawyers are very good at attracting the attention of the U.S. Supreme Court by predicting that terrible things will happen if the justices don’t intervene.

The latest case in point: On Friday, the Supreme Court granted a petition by Macquarie Infrastructure Corp to review a 2022 ruling in which the 2nd U.S. Circuit Court of Appeals allowed a class of shareholders to proceed with securities fraud claims based on, among other things, the company’s alleged violation of the U.S. Securities and Exchange Commission’s administrative disclosure rules. (The company is now renamed Atlantic Aviation Infrastructure Corp, but I’ll call it MIC, as both sides did in Supreme Court briefing.)

Source: Column: U.S. Supreme Court to decide if SEC disclosure violations are valid basis for shareholder fraud claims | Reuters