Credit: BillionPhotos.com/Adobe Stock Alleging Scheme Liability in the Wake of 'Lorenzo'
As a result of its recent holding in 'Rio Tinto', the Second Circuit has preserved two main arguments for companies facing securities lawsuits under §10(b).
July 26, 2022 at 12:00 PM
7 minute read
On July 15, 2022, the U.S. Court of Appeals for the Second Circuit issued an opinion in SEC v. Rio Tinto plc, — F.4th —-, 2022 WL 2760323 (2d Cir. 2022), ruling that claims under Rule 10b-5(a) and (c) ("scheme liability claims") may not be based on allegations of misstatements and omissions alone. In doing so, the Second Circuit affirmed that its holding in Lentell v. Merrill Lynch & Co., 396 F.3d 161 (2d Cir. 2005) remains good law after Lorenzo v. SEC, 139 S. Ct. 1094 (2019).
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