High Court to Clarify Standards for Investor Lawsuits, As Bond Sellers Warn of ‘Devastating’ Consequences
October 1, 2004
The U.S. Supreme Court has agreed to review a lower-court decision that made it much easier for an investor to win substantial damages if a securities issuer has to correct information about a security, even if the investor did not lose any money on the trade. The Securities Industry Association, the Bond Market Association, and other groups are urging the court to overturn the decision. In an amicus brief, the BMA said that the ruling…