top of page
Writer's picturePaul Peter Nicolai

Supreme Court Says No Private Cause of Action for Pure Omissions

Updated: Dec 9

The U.S. Supreme Court has decided that private causes of action are not available for pure omissions of information by public companied.  It said rule 10b-5 guards against half-truths that make an affirmative statement misleading, not against pure omissions.

 

WHY THIS IS IMPORTANT… This decision resolves a split across the country.  Some courts had allowed these cases.  Others did not.  The effect of the decision is to cut back on the availability of private causes of action for alleged disclosure gaps.

 

コメント


bottom of page