U.S. Supreme Court Securities Litigation Decisions

Summary

This practice note highlights a selection of U.S. Supreme Court decisions that touch on key aspects of the securities laws, including (1) liability for statements of opinion and belief; (2) the scope of liability under the Securities Exchange Act of 1934, as amended (Exchange Act); (3) disgorgement in Securities and Exchange Commission (SEC) enforcement actions; (4) issues relating to the Securities Litigation Uniform Standards Act of 1998 (SLUSA); (5) limitation periods; and (6) the scope of liability under the Securities Act of 1933, as amended (Securities Act). The U.S. Supreme Court has shaped the contours of litigation under the Securities Act and the Exchange Act and has been particularly attentive to issues arising under these statutes in recent years. This note discusses critical decisions on issues such as materiality, scienter, loss causation, reliance, extraterritoriality, and insider trading.