On April 5, 2024, WLF asked the Supreme Court to review, and ultimately reverse, a Ninth Circuit decision that would hold companies liable for failing to include irrelevant and stale information in their forward-looking risk disclosures. WLF’s amicus brief was prepared with the pro bono assistance of Lyle Roberts, George Anhang, and William Marsh of Shearman & Sterling LLP. As WLF explains in its amicus brief urging review, the Ninth Circuit’s ruling will force companies to overdisclose risks about immaterial past incidents, which will confuse investors who must navigate a company’s SEC filings to find information relevant to their investment decisions. And under the Ninth Circuit’s lax pleading standard, companies will be vulnerable to frivolous securities litigation based on accurate forward-looking statements—an outcome Congress sought to avoid when passing the Private Securities Litigation Reform Act.
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