On November 22, 2024, the Supreme Court dismissed as improvidently granted a petition to review an important Ninth Circuit securities case. The dismissal was a disappointment for WLF, which filed an amicus brief urging reversal. WLF’s brief explained that the Ninth Circuit’s rule would force companies to overdisclose risks about immaterial past incidents, confusing investors who must navigate a company’s SEC filings to find information relevant to their investment decisions. Under this lax pleading standard, companies will be vulnerable to frivolous securities litigation based on accurate forward-looking statements—an outcome Congress sought to avoid when passing the Private Securities Litigation Reform Act. WLF’s amicus brief was prepared with the pro bono assistance of Lyle Roberts, George Anhang, and William Marsh of A&O Shearman.
Documents: