Cleary Gottlieb's "
2019 Mid-Year Developments in Securities and M&A
Litigation" discusses major developments from the first
half of 2019 and highlights significant decisions and trends
ahead.
In Lorenzo, the most
significant securities decision in 2019 so far, the Supreme Court
clarified the scope of "scheme liability" under Rule
10b-5(a) and (c). The Court also declined to rule on several
significant issues arising from the Ninth Circuit, including
whether plaintiffs must show that the defendant acted with scienter
when bringing claims under Section 14(e), whether Morrison
extends to unsponsored American Depositary Receipts, and the
standard for establishing loss causation. Looking ahead, we will be
watching for a potential grant of certiorari from the Tenth
Circuit's decision in Scoville, which held that the
Dodd-Frank Act permits the SEC to bring fraud claims or claims
under Section 17 of the Securities Act based on sales of securities
that do not constitute
