"The only thing that the lower courts held [previously] is that Facebook can be liable if the statement, in context, was materially misleading. The investors, a bank and a public pension plan, are seeking compensation for the lost value of their stock.
My guess is that the justices will be frustrated by how little the issues on which the parties discuss in their briefs resemble the question they agreed to review. In an effort to offer something predictive about what we might see at the argument, I would point to two things. The first is a deep-seated skepticism of securities fraud litigation held by some of the justices, who tend to view litigation in this area as akin to extortion based on hindsight. The court has also issued a number of decisions in recent years in favor of corporate interests that have weakened federal regulators, including at the Securities and Exchange Commission.
On the other hand, it is a powerful benefit to the investors that the government filed a parallel suit against Facebook, contending that its disclosures about security breaches were insufficient; the government appears in full support of the investors and will share in their oral argument time. It similarly helps the investors that there is a forceful and direct friend-of-the-court brief signed by most of the most famous securities law scholars, arguing that the securities laws bar any kind of categorical exception for misleading statements made in forward-looking risk disclosures."
My guess is that the justices will be frustrated by how little the issues on which the parties discuss in their briefs resemble the question they agreed to review. In an effort to offer something predictive about what we might see at the argument, I would point to two things. The first is a deep-seated skepticism of securities fraud litigation held by some of the justices, who tend to view litigation in this area as akin to extortion based on hindsight. The court has also issued a number of decisions in recent years in favor of corporate interests that have weakened federal regulators, including at the Securities and Exchange Commission.
On the other hand, it is a powerful benefit to the investors that the government filed a parallel suit against Facebook, contending that its disclosures about security breaches were insufficient; the government appears in full support of the investors and will share in their oral argument time. It similarly helps the investors that there is a forceful and direct friend-of-the-court brief signed by most of the most famous securities law scholars, arguing that the securities laws bar any kind of categorical exception for misleading statements made in forward-looking risk disclosures."
https://www.scotusblog.com/2024/11/securities-disclosure-ove...