Published on April 2, 2017 | by LawNews
Prof. Ronald Colombo Comments in Law360 Story on Possible Impact of SCOTUS Review of Leidos Investor Suit
Silence May Not Be Golden For Cos. After High Court Review
By Carmen Germaine
March 27, 2017
The high court on Monday accepted Leidos Inc.’s petition for review of a Second Circuit ruling reviving a proposed class action alleging the contractor withheld information that it was being investigated by state authorities for overbilling New York City. The appeal will resolve a split between the Second and Ninth circuits over whether a company can face liability for securities fraud claims from third parties if it doesn’t disclose “known trends and uncertainties” as required by Item 303 of the SEC’s Regulation S-K.
“I’m not surprised the Supreme Court took this case, because it’s a really important issue that does have potentially enormous consequences,” said Ron Colombo, a professor at Hofstra University’s Maurice A. Deane School of Law.
Read the full article on law360.com (registration required).