Addressing Materiality At The Pleadings Stage

Law360, New York (September 7, 2011, 1:16 PM EDT) -- In two recent decisions issued less than one week apart, Hutchison v. Deutsche Bank Securities Inc. (2d Cir. July 26, 2011), and U.S. Securities and Exchange Commission v. Gabelli (2d Cir. Aug. 1, 2011), the United States Court of Appeals for the Second Circuit addressed motions to dismiss securities law claims based upon the immateriality of the defendants’ alleged misstatements or omissions.

Generally, the question of whether a misstatement or omission is “material” –– i.e., significant enough that a “a reasonable shareholder would consider it important...
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