A recent 48-page opinion by Judge Gregory G. Lyman of the La Plata County District Court sheds significant light on defending securities law claims in Colorado. Although few securities cases proceed to trial in Colorado, this case demonstrates that a comprehensive approach to attacking materiality maximizes the likelihood of a defense verdict.
In states like Colorado with investor-friendly securities laws, defendants lack options to challenge certain securities claims because plaintiffs need not prove reliance, intent or causation. In these situations, where the claim essentially imposes strict liability for any material misrepresentation or omission,
disputing materiality is often the principal weapon to attack the plaintiff ’s claim.
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