Panel: FOIA Responses May Constitute Corrective Disclosure In Securities Suit

Mealey's (November 4, 2020, 2:30 PM EST) -- PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals on Nov. 3 ruled that a federal district court erred in dismissing shareholder claims against a bank and certain of its senior executives based on evidence uncovered by Freedom of Information Act (FOIA) requests with the Securities and Exchange Commission for failure to plead loss causation because that information was not already publicly available and, therefore, constituted a corrective disclosure (David Grigsby, et al. v. BofI Holding Inc., et al., No. 19-55042, 9th Cir., 2020 U.S. App. LEXIS 34662)....