A company’s failure to disclose “known trends and uncertainties” that are expected to affect its business can create liability for securities fraud, the SEC told the US Supreme Court in a friend of the court brief.
The disclosures give investors “an opportunity to look at the company through the eyes of management” and help them understand the company’s performance, the government said. It filed its brief Wednesday in support of an institutional investor that’s fighting to keep securities fraud claims alive in a proposed class action against Macquarie Infrastructure Corp.
The US also sought to participate in oral argument, which ...