News & Events

News & Events


Supreme Court Rejects Bright-Line Test for Determining Materiality in Securities Fraud Cases

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On March 22, 2011, the Supreme Court issued a unanimous opinion in Matrixx Initiatives v. Siracusano, that reaffirmed its long-standing test for determining materiality with respect to securities fraud claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and rejected a “bright-line” materiality rule based on whether or not there was a “statistically significant number” of adverse events.

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For more information, please contact the Securities Litigation Practice Group at Lane Powell:

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