This week, the Ninth Circuit considers whether Twitter's
statements about a software bug causing privacy problems were
actionable for securities fraud, and whether a zoning ordinance in
Salinas, California, violated the Religious Land Use and
Institutionalized Persons Act.
WESTON FAMILY PARTNERSHIP LLP V. TWITTER,
INC.
The Court holds that Twitter's statements and omissions
about an ongoing software problem causing privacy problems were not
actionable under securities law.
Panel: Judges Collins, Lee, Otake (D. Hawaii),
with Judge Lee writing the opinion.
Key Highlight: "Securities laws
. . . do not require real-time business updates or
complete disclosure of all material information whenever a company
speaks on a particular topic. To the contrary, a company can speak
selectively about its business so long as its statements do not
paint a misleading picture."
