Supreme Court Will Examine Materiality in Securities Fraud Class Action Against Pharmaceutical Company
By William F. Sullivan and D. Scott Carlton
On June 14, 2010, the United States Supreme Court granted certiorari in the matter of Matrixx Initiatives, Inc., et al. v. Siracusano, et al., No. 09-1156, agreeing to address plaintiffs pleading burden for claims brought under Section 10(b) of the Securities and Exchange Act of 1934 (the Exchange Act). Matrixx is the latest among a string of securities cases taken by the Court assessing the scope and pleading standard for fraud claims. For the first time, Matrixx provides the Court with the opportunity to address the pleading requirement for alleging materiality of a misstatement or omission.