Supreme Court Rejects Bright Line Test of Statistical Significance for Materiality in Securities Claims

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.

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