Second Circuit Cites Macquarie In Affirming Dismissal Of Putative Securities Class Action

In a summary order issued on June 10, 2024, the Second Circuit Court of Appeals relied on the U.S. Supreme Court's holding in Macquarie Infrastructure Corp. v. Moab Partners, L.P., 601 U.S. 257 (2024), for the first time, demonstrating the relevance of the Court's ruling to securities class actions.

Earlier this year, the Supreme Court ruled unanimously in favor of Macquarie Infrastructure Corporation, which was represented by Winston & Strawn. The Court reversed the judgment of the Second Circuit and held that Securities and Exchange Commission "Rule 10b–5(b) does not proscribe pure omissions"; rather, it "requires disclosure of information necessary to ensure that statements already made are clear and complete." Macquarie, 601 U.S. at 264.