Stuart J. Kaswell

Jun 4, 2024 | businesslawtoday.org | Leona Yazdidoust |Jim Sandy |McGlinchey Stafford PLLC |Stuart J. Kaswell

CURRENT MONTH (May 2024)U.S. Supreme Court Ruling Clarifies Scope of Rule 10b-5(b) Claims under Securities Exchange Act of 1934By Leona YazdidoustIn Macquarie Infrastructure Corp. v. Moab Partners, L. P., the U.S. Supreme Court held that a failure to disclose information required by Item 303 of SEC Regulation S-K (“Item 303”) cannot support a private action under Rule 10b-5(b), when the failure does not render any “statements made” misleading.

May 28, 2024 | businesslawtoday.org | Stuart J. Kaswell

The Supreme Court recently answered the question of whether an issuer’s failure to disclose important information violated Rule 10b-5(b), an important anti-fraud prohibition in the federal securities laws. In addition, one AI program was not quite ready to uncover a key distinction in that case. It is worth considering both the case and the incipient AI analysis.[1]In Macquarie Infrastructure Corp. et al. v. Moab Partners, L.