Hedge Fund, SEC Allied at Top Court Over Trend Disclosure Suits

A hedge fund next week will ask the US Supreme Court to approve a reading of securities law that allows investors to sue companies for failing to disclose known trends—a role that regulators typically play.

The fund, Moab Partners LP, sued Macquarie Infrastructure Corp. for failing to signal its exposure to changing fuel oil regulations in the shipping industry. Macquarie, an energy supply conglomerate, is fighting an influential appeals court’s decision in the argument before the justices on Jan. 16. That decision allowed shareholders to bring securities fraud suits citing a Securities and Exchange Commission regulation that requires disclosures of ...