Justices Face Muddy Waters With Omnicare Middle Ground
Lane Powell Shareholder Claire Loebs Davis was quoted in a November 7 Law360 article titled “Justices Face Muddy Waters With Omnicare Middle Ground.” The article discussed how the U.S. Supreme Court seems unwilling to uphold the Sixth Circuit’s ruling that securities issuers can be held responsible for sharing opinions with investors that turned out to be false in Omnicare Inc. v. Laborers District Council Construction Industry Pension Fund. Experts believe that a proposed middle-ground ruling in the matter could burden litigants with uncertainty of having their subjective opinions evaluated without objective standards. Davis discussed an alternative to the middle-ground option.
Claire Davis, securities litigator at Lane Powell PC, is hoping for a second middle-ground option, one that she believes would avoid the gray area of the reasonable basis standard altogether. Davis co-authored an amicus brief on behalf of the Washington Legal Foundation in which she urged the Court to look at statements of opinion in terms of whether or not they are misleading.
“All the federal securities statutes, including Section 11, have a provision saying that there’s also liability if the speaker omits facts necessary to making statements not misleading,” she said. “There’s no reason that statements of opinion in that regard need to be treated any differently from any other statement.”