Tag: Omissions

Supreme Court SEC Disclosure Ruling Confusing for Courts, Markets

The court’s decision that only “half-truths” are actionable whereas “pure omissions” aren’t means that investors, lawyers, and judges now must analyze Item 303 violations carefully to categorize them. If that supposedly bright-line distinction evades the average reader, the justices provided a quaint analogy: “The difference between a pure omission and a half-truth is the difference between a child not telling…

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Corporate silence on impactful trends not securities fraud, US Supreme Court rules | Reuters

Shareholders cannot sue companies for fraud if they flout a rule requiring disclosure of trends expected to affect their bottom line unless the omission makes another statement misleading, the U.S. Supreme Court ruled on Friday. The 9-0 ruling authored by liberal Justice Sonia Sotomayor handed a victory to Macquarie Infrastructure in a proposed shareholder class action accusing the company of…

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