A Matter of Opinion: Pleading False Statements Under Section 11
Later this year, the U.S. Supreme Court will address whether an allegedly false statement of opinion or belief in a securities registration statement is actionable if the speaker genuinely believed what was stated. In Omnicare Inc. v. Laborers District Council Construction Industry Pension Fund, the court granted certiorari to resolve a split between the 6th Circuit and the 2nd, 3rd and 9th circuits. The court will decide whether plaintiffs asserting claims under Section 11 of the Securities Act of 1933 must allege that purportedly false statements of opinion in a registration statement were both contrary to fact and disbelieved when made. The full article is available here.