When the curtain rose for oral argument in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, on November 3, everyone thought the issue was whether a statement of opinion that turns out to be false gives rise to liability when it is included in a registration statement in connection with a stock offering under the Securities Act of 1933.
Following yesterday’s oral argument, there is not much doubt that the Supreme Court is inclined to affirm the decision of the Sixth Circuit in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, holding that the pension fund stated a cause of action under Section 11 of
Securities fraud is back in the Supreme Court in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund. This time the question relates to Section 11 of the Securities Act of 1933, which provides for strict liability – indeed almost absolute liability – if a registration statement for a public offering contains an untrue statement of a material fact.
The eagerly awaited decision in Halliburton Co. v. Erica P. John Fund – before the Court for the second time – was finally handed down by the Supreme Court. As usual, there is a little something for everyone. What is unusual is that there were no dissents.