The U.S. Supreme Court unanimously reversed the Sixth Circuit yesterday in a securities fraud action brought against Omnicare, Inc., a Cincinnati pharmaceuticals services company, under Section 11 of the Securities Act of 1933, 15 U.S.C. § 77k. See Omnicare Inc. v Laborers District Council Construction Industry Pension Fund, Case No. 13-435 (2015) (PDF). In siding … Continue Reading
The Supreme Court granted certiorari in ten cases today, three of them from the Ninth Circuit and two from the Fifth. It also accepted review of the Sixth Circuit’s decision in Coleman v. Tollefson (13-1333), which held that the district court properly denied pauper under the Prison Litigation Reform Act (PLRA), 28 U.S.C. § 1915(g), … Continue Reading
The Supreme Court has granted certiorari from the Sixth Circuit’s decision in Laborers District Council Construction Industry Pension Fund v. Omnicare, Inc. In that securities class action, the plaintiffs allege that statements from a 2005 registration statement that Omnicare’s agreements with drug companies were “legally and economically valid” had violated securities laws. Creating a split … Continue Reading
Circuit splits. They play an important role in shaping the Supreme Court’s agenda. There are a number of reasons why the Supreme Court focuses on Circuit splits, including because: (1) the Constitution favors uniformity, (2) the Supreme Court seeks to discourage forum shopping, and (3) the Supreme Court is motivated by the desire to ensure … Continue Reading
Creating a split with the Second and Ninth Circuits, the Sixth Circuit has held that Section 11 of the Securities Act, 15 U.S.C. § 77k, which creates liability for false statements in registration statements, provides for strict liability and so does not require allegations of knowledge of falsity. The panel in Ind. State Dist. Council … Continue Reading