Brownstein Victory Demonstrates Value of Vigorously Challenging Materiality Allegations in Securities Fraud Trials

Brownstein Victory Demonstrates Value of Vigorously Challenging Materiality Allegations in Securities Fraud Trials

Jan 10, 2017

Client Alert

Brownstein Client Alert, January 10, 2017

The materiality of misrepresentations and omissions in securities fraud litigation is a complex but critical issue. For several reasons, defendants sometimes give this element of a securities claim less attention than it deserves.

Defendants may avoid vigorously challenging materiality for at least three reasons. First, there may be a tendency to accept the legally deficient but superficially appealing argument that “all information is important and thus material to investors.” Second, particularly if the possible event to which the alleged misrepresentation or omission pertained has occurred since the purchase or sale of the security, hindsight analysis too easily leads one to conclude that “since the event happened, information about it must have been important or material.

To read the full alert, please click the PDF above. 

Meet The Team

Maximilien D. Fetaz Associate T 702.464.7083 mfetaz@bhfs.com
Emily R. Garnett Associate T 303.223.1171 egarnett@bhfs.com
Carrie E. Johnson Shareholder T 303.223.1198 cjohnson@bhfs.com
Thomas J. Krysa Shareholder T 303.223.1270 tkrysa@bhfs.com
John V. McDermott Shareholder T 303.223.1118 jmcdermott@bhfs.com
David B. Meschke Associate T 303.223.1219 dmeschke@bhfs.com
Jeffrey S. Rugg Shareholder T 702.464.7011 jrugg@bhfs.com
Joshua A. Weiss Associate T 303-223-1268 jweiss@bhfs.com
Lawrence W. Treece Shareholder T 303.223.1257 ltreece@bhfs.com