U.S. Supreme Court Oral Arguments Facebook v. Amalgamated Bank
Nov 6, 2024
Mr. Shamagam represents Meta, arguing against securities liability over past risk omissions. Meanwhile, Mr. Russell and Mr. Barber, from Amalgamated Bank, contend that Facebook's disclosures are misleading. They delve into the complexities of corporate disclosures, discussing the critical distinction between materiality and falsity. The dialogue also highlights the implications of past data breaches, regulatory challenges, and the necessity for transparency in risk communication to protect investors. The episode paints a vivid picture of the ongoing legal battle and its impact on corporate accountability.
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Ninth Circuit Ruling Impact
- The Ninth Circuit’s ruling could increase securities liability for omissions.
- Risk disclosures warn of future harm, not past occurrences.
Contextual Risk Disclosure
- Hypothetical situations, like a fire destroying a plant, illustrate how context matters in risk disclosures.
- A reasonable investor would find a hypothetical statement misleading if the described event had already occurred.
Misleading Futuristic Statements
- Past triggering events can cause future harm, which can be misleading if not disclosed.
- Futuristic statements in risk disclosures can mislead investors about potential ongoing harm.