U.S. Supreme Court Ruling Clarifies Scope of Rule 10b-5(b) Claims under Securities Exchange Act of 1934.

The U.S. Supreme Court recently ruled in the case of Macquarie Infrastructure Corp. v. Moab Partners that a failure to disclose information required by SEC Regulation S-K's Item 303 cannot support a private action under Rule 10b-5(b) of the Securities Exchange Act of 1934, unless the omission renders any "statements made" misleading. The Court clarified that Rule 10b-5(b) does not prohibit pure omissions, but only addresses half-truths. This ruling affirms that pure omissions are not actionable under Rule 10b-5(b). [Extracted from the article]