Extending Omnicare Beyond The Section 11 Case
By William Sullivan, Thomas Zaccaro, Ryan Walsh and Bryant Lin
In City of Dearborn Heights Act 345 Police & Fire Retirement System v. Align Technology Inc., the Ninth Circuit held that the standards for pleading falsity of opinion statements articulated by the U.S. Supreme Court in Omnicare Inc. v. Laborers District Council Construction Industry Pension Fund apply to claims brought under Section 10(b) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5. Rule 10b-5, which was promulgated pursuant to Section 10(b), prohibits any act or omission resulting in fraud in connection with the purchase or sale of any security.
This article originally appeared in Law360.