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Supreme Court to Review Ninth Circuit Ruling on M&A Intent Standard

Posted Jan 17, 2019

The Supreme Court has decided to review a Ninth Circuit decision on the intent required for private rights of action pursuant to Section 14(e) of the Securities Exchange Act of 1934. In Varjabedian v. Emulex Corp. , the Ninth Circuit disagreed with five other circuits in deciding that a showing of negligence is sufficient to state a Section 14(e) claim. The Second, Third, Fifth, Sixth, and Eleventh Circuits have held that claims must allege scienter. See National Law Review.