Tag Archives: Omnicare

U.S. Supreme Court Unanimously Reverses Sixth Circuit in Closely Watched Securities Fraud Case

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

Supreme Court Accepts Omnicare Securities Class Action

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 Involving The Sixth Circuit in 2013

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

Sixth Circuit Revives Securities Class Action

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