The U.S. Supreme Court yesterday ruled in a securities case on the issue of materiality. Matrixx Initiatives, Inc. v. Siracusano (No. 09-1156) (Mar. 22, 2011). Read opinion here. It has already been the subject of learned commentary by several law professors and others, so until I can provide my own overview, I refer readers to the following highlights:
- Professor Barbara Black reviews the case here.
- Kevin LaCroix provides insights here. Kevin noted that the "Court rejected the argument of Matrixx Initiatives that adverse product reports must be "statistically significant" in order for a manufacturer to have an obligation to disclose the reports to investors. As a result of the Court’s decision, shareholders claims against the company for its alleged failure to disclose reports that its Zicam cold remedy caused loss of smell for some users will now be going forward."
- The Davis Polk firm writes about the case here.