New York court adopts Delaware “common sense” test for assessing whether claims assert derivative or direct harm *

USA - August 13 2012
On August 7, 2012, in Yudell v. Gilbert, the Appellate Division, First Department adopted a test first articulated by the Delaware Supreme Court in assessing whether a claim is direct or derivative in nature.

Co-authors: Ryan J. Casson, Alisa E. Moen.

Supreme Court confirms that the failure to disclose adverse reports may be materially misleading but rejects statistical significance as bright-line test for materiality and scienter *

USA - March 31 2011
On March 22, 2011, in Matrixx Initiatives, Inc. v. Siracusano, -- S.Ct. --, 2011 WL 977060 (Mar. 22, 2011), the United States Supreme Court issued a unanimous decision ruling that reports of adverse events concerning a pharmaceutical company’s product may be sufficiently “material” under the federal securities laws.

Co-authors: Philippe M. Salomon, Evan H. Lechtman , James V. Masella III, Joseph O. Click, Jeremy Reiss.