Supreme Court Rejects Bright Line Test of Statistical Significance for Materiality in Securities Claims
By The Securities Litigation and Enforcement Practice
On March 22, 2011, the Supreme Court of the United States issued a decision in the matter of Matrixx Initiatives, Inc., et al. v. Siracusano, et al., No. 09-1156. The unanimous decision, written by Justice Sotomayor, rejected a bright line test of statistical significance to determine when information must be disclosed to investors under the securities laws.