In order for the SEC or a private litigant to make out a claim for securities fraud under § 10(b) of the Securities Exchange Act of 1934, it must prove that the alleged misstatements or omissions were material. While courts often deny summary judgment as to materiality in securities fraud cases because “it depends on determining a hypothetical investor’s reaction to the alleged misstatement,” there is no shortage of cases making it clear that materiality may be resolved by a court as a matter of law.
Circuit Split: Whether Stock Price Movement Under the Efficient Market Hypothesis Is Dispositive of Materiality
