6th Circuit Takes Wide View Of Liability In Stock Inflation Suits

Law360, New York (May 23, 2013, 3:35 PM EDT) -- The Sixth Circuit on Thursday revived a proposed class action claiming Omnicare Inc. artificially inflated its stock price by concealing a kickback scheme, finding that an action brought under Section 11 of the Securities Act of 1933 doesn't have to show a defendant knew false statements were being made to survive. 

A three-judge panel for the appeals court held that under Section 11, Omnicare is liable for any registration statement that contains an “untrue statement of a material fact,” reversing part of a Kentucky federal court’s...
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