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Materiality in Rule 10b-5 claims.
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Contributed in 2008 by David Gold
Law
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Commerce, labor, particular activities & industries
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Securities
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Liability & enforcement
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Fraud claims
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SEC Rule 10b-5
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Substance
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Liability
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Primary
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Types of claims (by types of wrongs)
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Misstatement/omission claims (10b-5(b))
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Elements
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Individual elements
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Material Misstatement or Omission
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Materiality: Materiality in Rule 10b-5...

In a Rule 10b-5 action, the discovery period may begin to run because the plaintiff had either actual notice or inquiry notice of the alleged fraud.
A misstatement or omission is material for purposes of a 10b-5 action if there is a substantial likelihood that a reasonable investor would...
A breach of fiduciary duty not involving an alleged fraud will not support a Rule 10b-5 claim.