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US Supreme Court: Pure Omissions Not Actionable Under Rule 10b-5(b)

On April 12, 2024, the US Supreme Court reversed the US Court of Appeals for the Second Circuit’s decision in Macquarie v. Moab Partners and held that a pure omission cannot form the basis of a securities fraud claim under...more

Trending in securities class actions: Section 10(b) claims predominate, Ninth Circuit sees uptick, according to Cornerstone Report

Cornerstone Research (a top consulting and expert testimony firm) issued its 2023 Year in Review report, examining recent trends in securities class action filings. According to the report, in 2023 there was a slight uptick...more

Second Circuit Highlights Difficulty in Pleading Fraud Claims Involving the Interpretation of Clinical Data

Plaintiffs often file securities fraud claims against pharmaceutical companies alleging that the company misled investors about clinical data, despite the US Food and Drug Administration (FDA) subsequently approving the drug...more

DOJ Announces New Safe Harbor Policy for Voluntary Self-Disclosure in M&A

The Department of Justice continues to make clear that one of its principal corporate enforcement priorities is encouraging companies to voluntarily self-disclose misconduct. To that end, the DOJ recently announced its...more

Supreme Court Rules FCA Liability Turns on Subjective Belief, Not Objective Reasonableness

Key takeaways - The US Supreme Court held that for the scienter element of the False Claims Act (FCA), what matters is the defendant’s “knowledge and subjective beliefs” – not objective reasonableness...more

When the Whistle Blows, Listen Carefully – and Consider Self-Disclosure

On February 22, 2023, the US Department of Justice announced a new voluntary self-disclosure policy for corporate criminal enforcement in US attorney’s offices nationwide. The policy offers concrete and meaningful incentives...more

Buyer (and Seller) Beware: SEC Adopts Final Rules on 10b5-1 Trading Plans

The Securities and Exchange Commission has long focused on pursuing potential insider trading violations, and its recent enforcement efforts serve as a stark reminder that the Commission has made insider trading cases a...more

In re Nektar Therapeutics: Ninth Circuit Affirms Dismissal of Securities Class Action Arising from Failure of Clinical Drug...

Summary - On May 19, 2022, a panel of the Ninth Circuit unanimously affirmed the district court’s dismissal of a putative securities fraud class action accusing Nektar Therapeutics and several of its executives of...more

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