High Court Hears Oral Arguments Over Exchange Act Section 14(e) Pleading Standard

Mealey's (April 16, 2019, 9:30 AM EDT) -- WASHINGTON, D.C. — The U.S. Supreme Court on April 15 heard oral arguments in an appeal of a Ninth Circuit U.S. Court of Appeals’ ruling in a securities class action lawsuit that Section 14(e) of the Securities Exchange Act of 1934 requires only a showing of negligence and not scienter but questioned the petitioners’ attorney as to why his clients did not raise their argument on appeal earlier in the litigation (Emulex Corp., et al. v. Gary Varjabedian, et al., No. 18-459, U.S. Sup.)....