Macquarie Ruling Raises the Bar For Securities Fraud Claims

Partners Michael Hines, Susan Saltzstein and Scott Musoff discuss the Supreme Court’s recent decision in Macquarie Infrastructure Corp. v. Moab Partners LP, explaining why it is a major setback for the plaintiffs bar, which is now foreclosed from predicating Section 10(b) claims on pure omissions. The authors point out that while the court's opinion specifically addressed Item 303, the ruling should apply to other disclosure obligations under Regulation S-K, including those concerning climate-related information.