The Supreme Court has agreed to decide a common issue in securities litigation that has split courts nationwide: whether shareholders can sue a public company that fails to "[d]escribe any known trends or uncertainties that have had or that the [company] reasonably expects will have a materially favorable or unfavorable impact" on the company. The quoted language is from Item 303 of SEC Regulation S-K, which requires the disclosure of such information in public companies' periodic reports. The issue is whether a company's failure to abide by Item 303 can qualify as an "actionable omission" and thus be sufficient grounds for a shareholder lawsuit under potent provisions supporting shareholder lawsuits: Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5 promulgated thereunder. While proponents of transparency support shareholders' rights to enforce such disclosure provisions, opponents argue that Item 303's language is too broad and would make it difficult to determine when management is obligated to make a disclosure. The Supreme Court is expected to issue an opinion by June 2018.