Is It Material? Depends On Who You Ask

Law360, New York (April 6, 2011, 1:43 PM EDT) -- On March 22, a unanimous U.S. Supreme Court held that the materiality of information misrepresented or not disclosed cannot be “reduced to a bright-line rule.” Matrixx Initiatives v. Siracusano, No. 09-1156, slip op. at 2 (2010). Given an opportunity to revise the law, the court adhered to its ruling in Basic v. Levinson, 485 U.S. 224, 231-32 (1988).

Information is considered material for disclosure purposes when there is “a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor...
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