- Learn More
The Paul, Weiss Litigation Department is led by a team of the country’s most accomplished trial lawyers. Our litigators in New York, San Francisco and Washington, D.C. handle the most complex and demanding lawsuits, class actions, government investigations, criminal prosecutions and restructurings. Our clients include Fortune 50 corporations and other prominent companies in the financial services, investment, medical device, pharmaceutical, sports, technology, energy, media and insurance industries. Every day, we are called on by chief executives, board chairs, general counsel, investors and entrepreneurs for our unmatched trial skills, sophisticated business judgment and renowned strategic advice.
Second Circuit Review: Statutory Standing Under §10(b) And SEC Rule 10b-5
November 28, 2022
Litigation of counsel Martin Flumenbaum and firm Chairman Brad Karp’s latest Second Circuit Review column, “Statutory Standing Under §10(b) And SEC Rule 10b-5,” appeared in the November 23 issue of the New York Law Journal. The authors discuss a recent decision in Menora Mivtachim Insurance Ltd. v. Frutarom Industries Ltd. in which the court held that a putative class of investors in an acquiring company did not have statutory standing under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 to sue the acquirer’s target company based on alleged misstatements that the target made about itself before the merger. The panel found that under circuit precedent, investors cannot sue a company whose stock they did not purchase for misstatements the defendant company made about itself, articulating a new categorical application of the “purchaser-seller” rule, which determines who can be part of a class in a securities class action, and furthering a 70-year-long trend toward a narrower class of Rule 10b-5 plaintiffs. Litigation associate Hillary Black assisted in the preparation of this column.