Douglas I. Koff, a member of Cadwalader, Wickersham & Taft, and Jason Jurgens, special counsel at the firm, write that, historically, courts have been hostile to theories that seek to blur the distinction between scienter and materiality, and typically emphasize that only the materiality of the alleged untrue statement of fact is relevant - not the materiality of the act or transaction that caused the untruth to be published. In any event, they conclude, it remains to be seen how practitioners and courts will construe the Second Circuit's rationale in JPMorgan regarding the "market reaction" SAB 99 factor.
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Circuit Gives Guidance to Litigators On Securities Fraud Claims
New York Law Journal
February 23, 2009
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