Corporate Litigation: 'Varjabedian v. Emulex': Supreme Court Set to Decide Whether §14(e) of the Exchange Act Requires Scienter
In their monthly Corporate Litigation column in the New York Law Journal, Litigation Partner Joe McLaughlin and Associate Shannon McGovern discuss how last year the Ninth Circuit diverged from a nearly 50-year consensus, holding in 'Varjabedian v. Emulex Corp.' that mere negligence is enough to plead and prove a claim for a material misstatement or omission under Exchange Act §14(e). The piece further explores how the Supreme Court recently granted certiorari to resolve the resulting Circuit split and the potential effects on federal securities lawsuits challenging mergers consummated through tender offers.