A Private Right to Sue Over Tender Offers
April 22, 2019
O’Melveny partner Matthew Close and counsel Brittany Rogers and Yaira Dubin co-authored this article in the April 22, 2019, issue of The Daily Journal, which discusses the Supreme Court case Emulex Corp v. Varjabedian.
“When the U.S. Supreme Court granted certiorari in Emulex Corp v. Varjabedian earlier this year, many court watchers and securities litigators expected a straightforward fight over the question presented: whether negligent misstatements in a tender offer suffice for investors to pursue claims under Section 14(e) of the Securities Exchange Act of 1934 ... In the decision under review, the 9th U.S. Circuit Court of Appeals took a contrary position, holding that Section 14(e) supports an inferred private right of action based on negligent misstatements during tender offers. The case thus presented a classic circuit split.”
Read the full article here.