Supreme Court Limits Shareholder Suits

The U.S. Supreme Court unanimously ruled that a corporation's failure to disclose certain information about its future business risks, without more, cannot be the basis of a private securities fraud claim under Federal law.

WHY THIS IS IMPORTANT… this decision resolves a split in the federal courts around the country by holding that unless a failure to disclose made something that was disclosed misleading, a failure to disclose is not enough to sustain a federal securities lawsuit.