• Supreme Court Rejects Bright-Line Test for Determining Materiality in Securities Fraud Cases
  • April 27, 2011
  • Law Firm: Lane Powell PC - Seattle Office
  • On March 22, 2011, the Supreme Court issued a unanimous opinion in Matrixx Initiatives v. Siracusano, that reaffirmed its long-standing test for determining materiality with respect to securities fraud claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and rejected a “bright-line” materiality rule based on whether or not there was a “statistically significant number” of adverse events.