Company Had Duty To Disclose Knowledge Of SEC Investigation To Investors

Mealey's (May 26, 2022, 1:50 PM EDT) -- NEW YORK — A federal district court partially erred in dismissing shareholder claims that a company that genetically engineers tobacco and cannabis plants to regulate the nicotine levels or cannabinoids of the plants and two of its former executive officers violated federal securities laws by concealing a Securities and Exchange Commission investigation into the weakness of the company’s financial controls because the defendants had a duty to disclose the investigation to investors but did not, a Second Circuit U.S. Court of Appeals panel ruled in vacating and affirming in part on May 24....