On July 22, 2013, the United States Court of Appeals for the Second Circuit issued a noteworthy decision regarding the standard for judging the materiality of alleged omissions in a class action lawsuit brought under Section 11 of the Securities Act of 1933. In In re ProShares Trust Securities Litigation, 2013 WL 3779634 (2d Cir. July 22, 2013), the Second Circuit articulated a standard for pleading materiality that emphasizes the need to read disclosures as a whole and from a common sense perspective. ProShares will be of interest to defendants in many Section 11 cases alleging omissions of material fact.
View full memo, "Second Circuit Addresses Materiality of Alleged Omissions at the Pleading Stage"