Securities And Derivative Litigation: Report

In this edition of Dechert’s Securities & Derivative Litigation: Report, we:

• Analyze two recent circuit court decisions addressing when a forward-looking risk disclosure becomes materially misleading if the warned-of risk has already materialized, which may implicate how your company drafts and updates its own risk disclosures, and the resulting circuit split following the Supreme Court’s dismissal of Facebook, Inc. v. Amalgamated Bank, 604 U.S. 4 (2024), as improvidently granted.
• Discuss what the Third Circuit’s abrogation of the three-decade-old Oran-Burlington materiality rule in In re Ocugen, Inc. Securities Litigation means for your company’s exposure to securities fraud claims in the Third Circuit, including at the motion to dismiss stage.