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Recent Developments in Securities Law

Matrixx and the Elusive Bright-Line Test for Materiality
Carlos F. Gonzalez
2012

In recent years, the US Supreme Court has curtailed the permissible scope of securities fraud actions, in part by tightening the pleading standards for plaintiffs who bring these actions in the federal courts. This has made it more difficult for plaintiffs to allege securities fraud and has rendered such claims increasingly vulnerable to a premature demise before courts can review and address them on their merits.