U.S. Supreme Court

Case Status


Docket Number



2010 Term

Oral Argument Date

January 10, 2011


Questions Presented

Whether a plaintiff can state a claim under § 10(b) of the Securities Exchange Act and SEC Rule 10b-5 based on a pharmaceutical company’s nondisclosure of “adverse event” reports even though the reports are not alleged to be statistically significant.

Case Updates

Supreme Court rules on materiality of statistically insignificant adverse event reports

March 22, 2011

Held: Respondents stated a claim under §10(b) and Rule 10b–5, because respondents adequately pleaded materiality and scienter.

U.S. Chamber files amicus brief

August 27, 2010

NCLC urged the Supreme Court to reject a Ninth Circuit ruling that plaintiffs established materiality in a securities fraud case against Matrixx Initiatives. The plaintiffs claim Matrixx withheld information about medical and legal issues surrounding the alleged side effects of Zicam. The Ninth Circuit held that the district court erred when it dismissed the claims because the alleged side effects were not statistically significant. In its brief, NCLC argued that materiality had not been established because the side effects were statistically insignificant and that their disclosure would not have affected a reasonable investor’s decisions. Dismissing cases that cannot establish materiality deters meritless securities fraud claims.

Case Documents