Supreme Court’s Influence on Securities Class Action Evolution

The U.S. Supreme Court has been pivotal in shaping securities class action law, reviewing significant cases since 2017 that influence the evolution of litigation in this domain. In 2023, the Court ruled in Slack Techs. LLC v. Pirani that unregistered shares from direct listings can’t support claims under Section 11(a) of the Securities Act, which demands the plaintiff to have bought the security under a materially misleading registration statement. Moreover, on September 29, 2023, the Court agreed to examine Macquarie Infrastructure Corp. v. Moab Partners, L.P., addressing a divide over whether SEC Regulation S-K’s Item 303 disclosures can lead to fraud claims under Section 10(b) of the Exchange Act. This case could potentially broaden the scope of securities liability related to Item 303 disclosures.