What you need to know: The Supreme Court recently found that defendants in class action securities fraud lawsuits will not be able to challenge the materiality of allegedly fraudulent misstatements or omissions at the preliminary, class-certification stage. Therefore, the materiality issue will almost always be deferred until summary judgment or trial, necessitating costly and distracting discovery.
What you need to do: Public life sciences companies must ensure that their public disclosures present an accurate and understandable sense of their business for investors, without relying on third-party information to round out the picture, since the Court’s decision means that these statements will be viewed in a vacuum until summary judgment or trial.
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Topics: Amgen, Amgen Inc. v Connecticut Retirement Plans, Class Action, Class Certification, Fraud-on-the-Market, Life Sciences, Materiality, SCOTUS, Securities Fraud
Published In: Business Torts Updates, Civil Procedure Updates, Science, Computers & Technology Updates, Securities Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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