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Supreme Court: Pure omissions not actionable under Rule 10b-5(b)

Image of the US Supreme Court.
Photo: Robert Alexander/Getty Images

Supreme Court says shareholders can’t sue a company under Rule 10b-5(b) for not disclosing risks or trends that might have a material impact on it.

Shareholders can’t sue a company for not disclosing the risks or trends that might have a material impact on its business, the US Supreme Court ruled last Friday.

In a unanimous decision, justices for the court found that Macquarie Infrastructure couldn’t be held liable by investors for securities