High Court Urged To Deny 2nd Circ.'s 'Trends' Disclosure Duty

Law360, New York (June 21, 2017, 8:42 PM EDT) -- Government contractor Leidos told the U.S. Supreme Court on Wednesday that the Second Circuit threatened basic tenets of securities litigation when it said certain U.S. Securities and Exchange Commission regulations create a duty to disclose "known trends and uncertainties.”

Leidos Inc. fought to fend off an investor suit alleging it withheld information concerning its involvement in New York City's scandal-plagued payroll project known as CityTime, saying the Second Circuit’s revival of the case invented a new disclosure duty that would spur hindsight-driven litigation. 

“Handed a powerful weapon against issuers, the plaintiffs’ bar will find manifold new ‘duties to disclose’ in every...

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