Lane Powell Files Brief on Behalf of Washington Legal Foundation in Omnicare Matter
Lane Powell Attorneys Kristen Beneski, Claire Loebs Davis and Doug Greene recently filed an amicus brief on behalf of the Washington Legal Foundation (WLF) in Omnicare Inc. v. Laborers District Council Construction Industry Pension Fund, in which the Sixth Circuit found that a statement of opinion can be false even if the speaker genuinely believes the stated opinion.
The Supreme Court’s forthcoming decision in the Omnicare case is important to all publicly held companies and their shareholders, because all companies disclose crucial information by means of opinions — such as subjective judgments regarding a company’s business and financial condition, risks and opportunities, and policies and priorities. The WLF is particularly concerned about the impact of this decision on technology and other growth companies, whose volatile stock prices make them especially vulnerable to abusive securities class actions. By exposing corporate actors to liability whenever their subjective judgments are later determined to be “wrong,” the Sixth Circuit’s decision endangers the prosperity of those companies and their shareholders. Oral arguments are scheduled for November 3.