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Showing posts with the label tort law

Silence, securities fraud, sulfur

  Macquarie Infrastructure v. Moab Partners -- a unanimous decision came down from our Supreme Court last week.  The opinion, written by Justice Sotomayor, says in essence that securities fraud, regarded as an actionable private tort, is a tort of malfeasance, not of nonfeasance.   Let us abstract from the particular facts a bit. Consider any case in which a plaintiff believes that he was sold stock by the issuing corporation at an unrealistically high price. He has sued. Asked why he bought it at such a price, the plaintiff might say, "They didn't tell me about X, a fact known to them and one that soon thereafter eliminated the value of the securities at issue." This decision tells that plaintiff: that isn't enough.  You're going to have to plead, and in due course prove, that they made materially false statements, not simply that they failed to make certain true ones. The decision is a matter of interpreting the text of an SEC rule,  10b–5(b), which m...

Overlooked Supreme Court decisions on what not to decide

At some time next month I will offer you my usual annual reflections on this Supreme Court term.  I make this note in advance, about a case SCOTUS has decided NOT to hear.  On June 21, the Supreme Court declined to take up the case of MONSANTO v. HARDEMAN.   In this matter a Californian man named Edwin Hardeman alleged RoundUp, a Monsanto product, had caused his cancer.  Hardeman received an award from a federal district court, applying California state law, of $25 million after a jury trial. But Monsanto has appealed, claiming that the matter is preempted by federal law, and the US EPA has concluded that the herbicide does not pose "any reasonable risk to man or the environment." Monsanto appealed, and the 9th Circuit held for plaintiff.  The US, under Trump, sought to intervene and take Monsanto's side before SCOTUS. The government, under Biden, has indicated that it takes Hardeman's view and wants the award to stand.  SCOTUS has decided not to hear ...