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Macquarie Infrastructure Corporation, et al. v. Moab Partners, L.P., et al.

Paid petition · United States Court of Appeals for the Second Circuit, No. 21-2524 · judgment December 20, 2022


Decided · April 12, 2024
Pre-decision estimate: 5% cert probability

Before the decision, modestly above the 4.1% base rate. The model weighted this up for a Second Circuit decision below, a circuit split argued in the petition, and a business petitioner, and down for a business respondent.

Question presented

Section l0(b) of the Securities Exchange Act of 1934 prohibits deception in connection with the purchase or sale of securities. To that end, SEC Rule l0b-5 declares it unlawful to make an untrue statement or omit a material fact "necessary" to make an affirmative statement "not misleading." 17 C.F.R. § 240.10b-5(b). A violation of this requirement can give rise to a private claim-a judicially implied private right of action that this Court has construed narrowly. Item 303 of SEC Regulation S-K calls for additional disclosures under a different standard. Item 303 is an administrative rule that requires a company to disclose known trends or uncertainties that are likely to have a material impact on its financial position, regardless of whether the company had made any statements that would otherwise be misleading. Against this backdrop, this case presents the following question: Whether the Second Circuit erred in holding-in conflict with the Third, Ninth, and Eleventh Circuits- that a failure to make a disclosure required under Item 303 can support a private claim under Section l0(b), even in the absence of an otherwisemisleading statement.

Counsel of record

For petitioner
Linda T. Coberly
Winston & Strawn, LLP

For respondent
David C. Frederick
Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C.

Case

Conference history
Distributed for 1 conference

Amicus briefs
2 cert-stage · 9 merits
(4 supporting pet./neither, 5 respondent)

Argument & decision

Argued January 16, 2024 — Linda T. Coberly · David C. Frederick. Audio and transcript

Decided April 12, 2024. Opinion by Sotomayor.

Proceedings

  1. May 14 2024
    Judgment Issued.
  2. Apr 12 2024
    Judgment VACATED and case REMANDED. Sotomayor, J., delivered the opinion for a unanimous Court.
  3. Jan 16 2024
    Argued. For petitioners: Linda T. Coberly, Chicago, Ill. For respondent Moab Partners, L.P.: David C. Frederick, Washington, D. C.; and Ephraim McDowell, Assistant to the Solicitor General, Department of Justice, Washington, D. C. (for United States, as amicus curiae.)
  4. Jan 05 2024
    Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument GRANTED.
  5. Jan 05 2024
    Reply of petitioners Macquarie Infrastructure Corp., et al. filed. (Distributed)
  6. Jan 05 2024
    Reply of respondent Barclays Capital Inc. in support of vacatur filed. (Distributed)
  7. Dec 20 2023
    Brief amicus curiae of United States filed. (Distributed)
  8. Dec 20 2023
    Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument filed.
  9. Dec 20 2023
    Brief amici curiae of Former SEC Officials filed. (Distributed)
  10. Dec 20 2023
    Brief amici curiae of Consumer Advocates filed. (Distributed)
  11. Dec 20 2023
    Brief amici curiae of Law and Business Professors filed. (Distributed)
  12. Dec 20 2023
    Brief amici curiae of Institutional Investors filed. (Distributed)
  13. Dec 13 2023
    Brief of respondent Moab Partners, L.P. filed. (Distributed)
  14. Nov 30 2023
    CIRCULATED
  15. Nov 29 2023
    Record received from the United States Court of Appeals for the Second Circuit. The record is electronic and is available with the Clerk.
  16. Nov 20 2023
    Record requested from the United States Court of Appeals for the Second Circuit.
  17. Nov 20 2023
    Brief amicus curiae of Atlantic Legal Foundation filed.
  18. Nov 20 2023
    Brief amicus curiae of Washington Legal Foundation filed.
  19. Nov 20 2023
    Brief amici curiae of Securities Industry and Financial Markets Association, et al. filed.
  20. Nov 20 2023
    Brief amicus curiae of The Society for Corporate Governance filed.
  21. Nov 17 2023
    SET FOR ARGUMENT on Tuesday, January 16, 2024.
  22. Nov 13 2023
    Brief of petitioners Macquarie Infrastructure Corp., et al. filed.
  23. Nov 13 2023
    Joint appendix filed. (Statement of costs filed)
  24. Nov 13 2023
    Brief of respondent Barclays Capital Inc. in support of vacatur filed.
  25. Sep 29 2023
    Petition GRANTED.
  26. Aug 30 2023
    DISTRIBUTED for Conference of 9/26/2023.
  27. Aug 28 2023
    Reply of petitioners Macquarie Infrastructure Corp., et al. filed. (Distributed)
  28. Aug 11 2023
    Brief of respondent Moab Partners, L.P. in opposition filed.
  29. Jul 27 2023
    Motion to extend the time to file a response is granted and the time is further extended to and including August 11, 2023.
  30. Jul 26 2023
    Motion to extend the time to file a response from August 2, 2023 to August 11, 2023, submitted to The Clerk.
  31. Jul 03 2023
    Brief amicus curiae of Washington Legal Foundation filed.
  32. Jul 03 2023
    Brief amici curiae of Securities Industry and Financial Markets Association, et al. filed.
  33. Jun 22 2023
    Motion to extend the time to file a response is granted and the time is extended to and including August 2, 2023.
  34. Jun 21 2023
    Motion to extend the time to file a response from July 3, 2023 to August 2, 2023, submitted to The Clerk.
  35. Jun 16 2023
    Waiver of right of respondent Barclays Capital Inc. to respond filed.
  36. May 30 2023
    Petition for a writ of certiorari filed. (Response due July 3, 2023)
  37. Apr 24 2023
    Application (22A920) granted by Justice Sotomayor extending the time to file until May 30, 2023.
  38. Apr 14 2023
    Application (22A920) to extend the time to file a petition for a writ of certiorari from April 27, 2023 to May 30, 2023, submitted to Justice Sotomayor.