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Showing posts with the label sulfur

More on securities fraud and sulfur

  Let us return to as subject broached last week, the US Supreme Court's decision in MACQUARIE INFRASTRUCTURE v. MOAB PARTNERS.  As I noted, the case involves the private (tort) use of an SEC rule, 10b-5, and it says that the omission of material facts by the issuer of securities will NOT present a cause of action in tort by a buyer of the securities unless the omission is such as to render statements that actually WERE made by the company misleading.   Today I'd like to say something about the specific underlying issue. Some of Macquarrie's most valuable assets are terminals for the storage of fuel oil. Its terminals are designed to accommodate high-sulfur fuel oil.  What Macquarrie neglected to say, setting up Moab's ire and this lawsuit, is that under the influence of a United Nations rule relating to climate change, high sulfur fuels are getting phased out around the world. That's a good thing.  But it is a very bad thing for the value of the Macquarrie...