ON24, Inc., et al. v. Leadersel Innotech ESG

Section 11(a) of the Securities Act of 1933 imposes liability when a registration statement “contain[s] an untrue statement of a material fact or omit[s] to state a material fact required to be stated therein or necessary to make the statements therein not misleading.” 15 U.S.C. § 77k(a). This petition presents three important and recurring legal questions regarding the “omissions” clause of the statute:

1. Whether an issuer violates Section 11(a)’s misleading-omissions prong by describing unmaterialized risks as hypothetical.

2. Whether an issuer violates Section 11(a)’s misleading-omissions prong whenever it omits information related to a disclosed fact regardless of whether the omission renders an affirmative statement misleading.

3. Whether an issuer violates Item 303 of Regulation S-K—and thus the prong of Section 11(a) prohibiting the omission of required statements—by failing to disclose immaterial facts as “known trends or uncertainties” that are reasonably likely to have a material impact on financial results.