Faculty Notes

Prof. Ronald Colombo Quoted in Law360 Story on 2nd Circuit Ruling in Vivint IPO Investor Suit

Ronald J. Colombo, Professor of Law

Divergence in Materiality Tests Narrower Than It May Seem
By Carmen Germaine
Law360
June 26, 2017

Excerpt:

Although the Second Circuit last week used strong language when it rejected a First Circuit test for assessing the materiality of certain financial information omitted from company registration statements, experts say the alternative laid out by the court sets an equally high bar for IPO investor suits.

“I don’t think it’s surprising that under either test, the First Circuit test or the Second Circuit test, the result came out the same, at least in this case,” said Ronald J. Colombo, a professor at Hofstra University’s Maurice A. Deane School of Law. “I think that’s because they’re really not as far apart as it may initially seem.”

Read the full article on law360.com (registration required).

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